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A W O R L D B A N K C O U N T R Y S T U D Y

Local GovernmentCapacity in Colombia

Beyond Technical Assistance

The World BankWashington, D.C.

Copyright © 1995The International Bank for Reconstructionand Development/ THE WORLD BANK

1818 H Street, N.W.Washington, D.C. 20433, U.S.A.

All rights reservedManufactured in the United States of AmericaFirst printing November 1995

World Bank Country Studies are among the many reports originally prepared for internal useas part of the continuing analysis by the Bank of the economic and related conditions of itsdeveloping member countries and of its dialogues with the governments. Some of the reports arepublished in this series with the least possible delay for the use of governments and the aca-demic, business and financial, and development communities. The typescript of this papertherefore has not been prepared in accordance with the procedures appropriate to formal printedtexts, and the World Bank accepts no responsibility for eriors. Some sources cited in this papermay be informal documents that are not readily available.

The World Bank does not guarantee the accuracy of the data included in this publication andaccepts no responsibility whatsoever for any consequence of their use. The boundaries, colors,denomination-,, and other information shown on any map in this volume do not imply on thepart of the World Bank Group any judgment on the legal status of any territory or the endorse-ment or acceptance of such boundaries.

The material in this publication is copyrighted. Requests for permission to reproduce portionsof it should be sent to the Office of the Publisher at the address shown in the copyright noticeabove. The World Bank encourages dissemination of its work and will normally give permissionpromptly and, when the reproduction is for noncommercial purposes, without asking a fee.Permission to copy portions for classroom use is granted through the Copyright ClearanceCenter, Inc., Suite 910, 222 Rosewood Drive, Danvers, Massachusetts 01923, U.S.A.

The complete backlist of publications from the World Bank is shown in the annual Index ofPublications, which contains an alphabetical title list (with full ordering information) and indexesof subjects, authors, and countries and regions. The latest edition is available free of charge fromthe Distribution Unit, Office of the Publisher, The World Bank, 1818 H Street, N.W., Washington,D.C. 20433, U.S.A., or from Publications, The World Bank, 66, avenue d'Ina, 75116 Paris, France.

ISSN: 0-0253-2123

Library of Congress Cataloging-in-Publication Data

Local government capacity in Colombia: beyond technical assistance.p. cm. - (A World Bank country study)

Includes bibliographical references.ISBN 0-8213-3480-81. Municipal government-Colombia. I. Intenational Bank for

Reconstruction and Development. II. Series.JS2508.L63 1995352.0861- dc20 95-44019

CIP

ContentsPreface ......................................................... v

Acronyms and Abbreviations ........................................................ vii

Executive Summary ........................................................ ix

Chapter 1: Local government effectiveness: evidence from the front-line .............................. 1

A new environment for municipios ........................... 1...........................

Local government effectiveness ................ 2

The key questions ................. 8

Chapter 2: Leadership and participation: the emergence of local capacity . . 10

L ocal leadership ........................................................ 10

Community participation ................................................. 13

Sustainable capacity development ....................... 16

Chapter 3: Capacity building: local initiatives, innovations and tribulations . . 18

The human factor: skills and professionalization .......................................................... 18

Capital: the physical factor .......................................................... 21

Technologies: improving the management process ......................................... 22

Tlhe challenge of putting it all together .......................................................... 24

Local capacity development .......................................................... 27

Chapter 4: Addressing the challenge of local capacity development . . 29

The proposed strategy .......................................................... 29

Implementing the strategy .......................................................... 32

Concluding remarks .......................................................... 34

Annexes 1: The municipios studied ......................................................... 35

2: The basic norms ruling decentralization ... ...................................................... 37

3: A conceptual framework to analyze capacity ......................................................... 38

4: Performance indicators in the water sector ......................................................... 42

5: Measuring performance ......................................................... 43

6: Opinion surveys ......................................................... 45

7: A profile of Colombian mayors ......................................................... 46

8: Municipal employment in Colombia ......................................................... 47

Bibliography ......................................................... 48

Map IBRD 26977

iii

LIST OF BOXES

1.1: And the water came with decentralization: An Acueducto for San Juan Nepomuceno ............3

1.2: W hat do citizens think? ...............................................................S5

1.3: Local resource mobilization ................................................................ 6

2.1: Community leadership in Versalles ............................................................... I 1

2.2: Violence, decentralization and local capacity ............................................................... 12

2.3: Innovations in community participation: the experience of Valledupar ............. ................... 13

2.4: The community influences government programs: the experience of Pensilvania ................. 15

2.5: The mingas in lpiales ............................................................... 16

3.1: The dimension of capacity ............................................................... 18

3.2: The ICAM of Manizales ............................................................... 21

3.3: The administration in Ipiales ............................................................... 23

3.4: Innovative planning in Valledupar ............................................................... 24

4.1: Working with NGOs ............................................................... 31

4.2: A new approach to technical assistance ............................................................... 33

4.3: The role of municipal associations ............................................................... 33

LIST OF TABLES

1.1: Local resource mobilization.7

2:1: A sample of experiences with community voice .............................................................. 14

3.1: Professionals in the municipal administration ........................................................ ...... 19

3.2: A sample of local capacity enhancing initiatives.25

iv

Preface

Colombia has made a strategic decision to the sixteen municipalities was organized be-decentralize to subnational governments re- fore the study was launched. The final designsponsibilities in sectors that are key to the of the case studies reflects the results of thatcountry's future. The success of that strategy workshop. Each case study involved work-depends critically on the capacity of local shops with communities and public servants.governments to perform their new duties in Opinion surveys were conducted in the fouran effective way. The World Bank and the largest municipios. A preliminary version ofColombian National Planning Department this report was discussed with a subgroup of(DNP) identified this as an area that deserved the participants in the initial workshop withspecial attention as part of their joint work mayors. This version incorporates theirfor the 1994 Poverty in Colombia report. comments. Support by the Fund for Innova-

This report presents the results of a joint ef- tive Approaches in Human and Social De-fort by the two institutions to address the velopment (FIAHS) made possible many ofneed for a more complete understanding of these participatory activities.the condition of capacity development in The World Bank team was composed byColombian municipios. It reflects the find- Ariel Fiszbein (mission leader), Tim Camp-ings of a study of sixteen local governments bell, Eduardo Wallentin and Marthain Colombia. The purpose of the study was Laverde. The DNP team was led by Albertoto learn about the progress made by munici- Maldonado and Jorge Acevedo. The re-pal governments since 1988 in developing the searchers in charge of the case studies thatcapacity needed to successfully perform their constitute the empirical basis for this reportnew responsibilities and the means through were, in alphabetical order, Juan Camilowhich they achieved those results. Those Cardenas, Ariel Cifuentes (final report pre-lessons provide the empirical basis for a pared by Gonzalo Vargas), Johnny Palenciastrategy of local capacity strengthening. and Camilo Villa Van Cotthem. They had the

In-depth case studies were prepared for six- assistance of Oscar Rosero, Miriam Mer-teen mun-cppios following a common meth- cedes Castilla, Olga Perez and Gonzalo Var-teen municipios followingespet aey. commony as ieth-ed godology. They are not necessarily a represen- gas respectively. The study was initiated intative sample of all Colombian municipali- June 1994 with the support of Cecilia Mariaties. Rather, they were selected on the basis Velez and Manuel Salazar who at that timethat, to different degrees, they made attempts were the Deputy Director of DNP and theto develop capacity. The strength of this evi- Chief of the Unidad de Desarrollo Territorial.

to eveop apaity Th stengh o ths ei- Their successors, Juan Carlos Ramnirezdence, however, resides in the fact that these (Dept suctor, Juan C a Kuremunicipalities-which face similar problems (Deputy Director, DNP) and Ileana Kureand constraints as the rest-have, to different (Chief, UDT) offered continued support anddegrees and varying success, faced-up to the made possible for the study to be success-challenge of decentralization. By studying fully completed.their experience we have learned many les- Emesto May and Hans Binswanger helped insons valid for other municipios. the definition of the conceptual framework

The study followed a participatory approach. used in the case studies. The team benefitedConcepts and methodologies were discussed from comments and advice by several people.openly in Colombia and the design of the In Washington by Dan Morrow, Nomnancase studies reflects suggestions by several Hicks, Ernesto May, Hans Binswanger, Vin-professionals in the field of institutional de- cent Gouame (peer reviewer) and Rita Hiltonvelopment. A workshop with the mayors of (peer reviewer). In Bogota by Femando Ro-

v

jas, Jaime Silva Bautista, Hector Sanin An- ized by DNP in Bogota on June 15, 1995.gel, the members of the UDT and partici- Comments by Cesar Vallejo and Jorge Enri-pants in a seminar organized by the DNP to que Vargas, who reviewed the report for thatdiscuss a preliminary version of the report. occasion, are welcomed.Sofia Corredor provided valuable secretarial Dan Morrow, Norman Hicks and Yoshiakisupport in Bogoti. Margarita Caro provided Abe were, respectively, the managing Divi-excellent help in the preparation of this re- s C L E aport. sion Chief, Lead Economist and Department

Director.This report was discussed with officials from Finally, the team wishes to thank the mayors,several ministries, departments, municipios, government officials and citizens of the six-the Federaci6n Colombiana de Municipios te msand cofmnancing funds, In a meeting organ- te uiiaiiswoegnru uprand cofnaninfuns,nameeingorg- and collaboration made this study possible.

VI

Acronyms and Abbreviations

ACUAVALLE Water Company of the Department of Valle

ASOOBANDO Asociacion de Municipios de la Provincia de Obando

CPC Community Participation Committee

CPU Central Planning Unit

DNP Departamento Nacional de Planeaci6n

DRI Desarrollo Rural Integrado

EMPOCALDAS Water Company of the Department of Caldas

EMPONARINO Water Company of the Department of Narifio

ESAP Escuela Superior de Administraci6n Pblica

FINDETER Financiera de Desarrollo Territorial

FIS Fondo de Inversi6n Social

FUNDAGUA Colombian Non-Governmental Organization

GTZ German Cooperation

ICAM Instituto de Capacitaci6n Municipal de Manizales

IDEA Instituto de Desarrollo Econ6mico de Antioquia

INSFOPAL Instituto de Fomento Municipal

ISERVI Instituto de Servicios Varios de Ipiales

NGO Non-Governmental Organization

PDI Programa de Desarrollo Institucional

PNR Plan Nacional de Rehabilitaci6n

PPF Production Possibility Frontier

PROCOMUN Colombian Non-Governmental Organization

SISBEN Sistema de Selecci6n de Beneficiarios

SSP Strategic Situational Planning

TPU Techno Political Unit

UBS Unidades Baisicas de Servicios

UFW Unaccountable for Water

UMATA Agricultural extension unit

UNDP United Nations Development Program

vii

Executive Summary

The questions This report should be seen as an effort toaddress both the scarcity of information on

For almost a decade now, Colombia has em- lal c ity the ned oforasategy tabarked in a process of state decentralization goes beyond the conventional technical assis-which, combine ith other tal re- tance approach. It is based on case studies offorms IS reshapmig in a fundamena mne sixteen municipios, jointly conducted by thethe way public pohlces are conducted. The Worl .an an h oobinNtoatransition to this new system is not an easy Planni anthe studies reviewedone. More than a thousand municipalities, Platmung Department. The studhes reviewed

seventy percent of which have populations of the euncaioa proads), ov thre perviolesstha twety houand,mus devlopthe (water, education and roads), over the periodless than twenty thousand, must develop the 19 8-9 corsodn to th.ditain

capabilities to perform effectively the newduties starting with little or no tradition of of popularly elected mayors. The municipioswere selected on the basis of their efforts topublic , dmnitrationcan l al goerne, develop the capabilities required to performAs a result, a natural concern has emerged thnerspsilte.Teapocho. . > . . ~~~~~~~the new responsibilities. T'he approach towithm Colombia on the capacity of local local capacity development we are proposinggovernments and the appropriate means of is based on the lessons derived from theirstrengthening it. experience.The conventional view indicates that a suc- While the report offers new evidence on thecessful process of decentralization requires a state of the decentralization process, it doesmassive technical assistance effort, led by the not claim to provide an assessment of nation-national level, to help local governments de- wide trends. Also, by focusing on issues ofvelop their capabilities: the professional and . t te rtechnical skills of their staff, the equipment, tetetoealuate the crrent hsyste of

p > ~~~~tempted to evaluate the current system ofmaterials and buildings required for opera- financial incentives under which municipiostions, as well as their organizational, plan- operate. This will be the subject of futurening and executing functions. collaborative work with the Colombian gov-

However, a certain skepticism regarding the einment.effectiveness of this approach has developedwithin Colombia and in the Bank. It is fu- The lessonseled, in part, by the frustrating experience oftechnical assistance programs that do not The picture emerging from the experience ofseem to achieve sustainable results. Consen- these municipios is encouraging. By makingsus on a new approach that postulates the use of existing, but under-utilized, capabili-ineffectiveness of purely supply-driven assis- ties and through conscious efforts to upgrade

tance programsisslowlyemerging.them, most of the local governments re-tance programs IS slowly emerging.vviewed in the study have been able to meet

The task of defining the characteristics of a the challenge of decentralization in a rela-new strategy for local capacity development tively effective way. The perception of gen-is made more difficult by the insufficient eralized collapse in services following devo-information on the current status of Colom- lution to local governments can be rejected,bian municipios-the effectiveness of their at least for these municipios. Serious prob-governments and the alternative ways in lems were observed in only a few places or inwhich they have attempted to develop their specific sectors. On the contrary, the studies,capacity in response to the new circum- backed up by opinion surveys, found evi-stances. dence of increased service coverage, citizen

ix

satisfaction, attention to rural areas and the particularly in terms of hiring a cadre of ade-poor, cost consciousness and resource mobi- quately remunerated professionals-due tolization efforts. insufficient scale. Also, the lack of institu-

The central message of the study is that tional efforts to disseminate information oncompetition for political office has, in best practices and alternatives to municipalmany cases, opened the doors to respon- problems, forces most municipios into thesible and innovative local leadership that, awkward position of "reinventimg the wheel"in turn, became the driving force behind when dealing with capacity development.capacity building efforts. More wide- Finally, doubts and uncertainties regarding aspread community participation-voicing rapidly expanding legal and regulatoryspred cmmuity artciptionvoiingframework, combined with sometimesdemands, making choices, being involved srained i oth s,mdoinotin projects-has expanded the range of strained Inter-govemmental relations, do not

cotrbute to maintaining an envirornmentpossibilities open to municipios and pro- contious to locaimnt efvenessvided the basis to sustain local government propitious to local government effectiveness.capacity over time. Leadership and par- Furthermore, the cases reviewed are not nec-ticipation, thus, consolidated corporate essarily representative of current events instrength in local governments. the rest of the country. Nevertheless, the ex-

A majority of the local governments reviewed perience of these municipios offers manyfor this study enhanced their capabilities by lessons to other Colombian municipios fac-giving attention to areas such as staff skills ing similar challenges and constraints on howand professionalization, equipment, materials to build capacity. It also provides valuableand buildings, organization, and planning lessons to national level institutions con-and execution functions. They did so drawing cemed with makig decentralization work.upon resources which already existed insidethe public sector or in the community that The challenge aheadwere not fully utilized under the old system. The chief findings of this study-the impor-Tlhey also initiated efforts to upgrade the tance of leadership, of civic involvement andskills of their staff (through new hirings and of political reform, as well as the tremendoustraining), expand the equipment available to potential for innovation at the local level-them (for example, contracting out to the lead us to propose an approach to capacityprivate sector), and improve the way local strengthening of local governments that im-administrations work (for example, involving plies the involvement of a variety of actors-users in decision-making). public and civic, central, regional and lo-

These municipios illustrate that capacity cal-and tools that go beyond traditionalcan be enhanced through skillful innova- technical assistance programs.tions even under difficult circumstances, Our proposal is based on three basic prem-given the right political incentives and if ises arising from the study:the community and its leadership are de- * Sustainable development of capacity attermined. It also suggests that assistance the local level is possible only when therefrom governmental and non-governmental is effective demand by local administra-organizations can play a role if it responds tions and communities. The interven-to and is guided by local demands. tions needed to increase demand for

However, even the most motivated mu- capacity development must go beyondnicipios face obstacles in the process of de- technical assistance and work, indi-veloping their capacity. For example, small rectly, by promoting innovative andmunicipios may experience capacity limits- responsible leadership and civic in-

volvement. This would have the double

x

effect of increasing demand for capacity The role of the center would be much moredevelopment and increasing capacity it- sharply focused on developing ways to lever-self in the form of better mayors and age incentives already being felt in civil so-council members and local participants. ciety. National authorities would thus be-This view is in consonance with the ap- come enablers of possibilities, rather thanproach proposed by the Government of direct builders of municipal institutionalColombia in its new development plan, strength. Departments should become part-El Salto Social, that calls for public ners and enablers of the efforts conducted atpolicies and actions conducive to more the local level. Cooperative forms of asso-participation and supportive of the de- ciations between municipalities could becomevelopment of participatory organizations. a central part of this approach. The Fed-

* Technical assistance should follow lo- eraci6n Colombiana de Municipios couldcal demand, be tailored to local needs, play a very important role, but it needs toand be provided in a decentralized regain its legitimacy among members andmanner. The challenge is to create the build up its own capacity.environment conducive to the emergence This approach to capacity development isand consolidation of a system in which sketched out as a concept, not a blueprint.multiple agents (public and private) are Further detail, delivery mechanisms, andpositioned to offer support to local gov- pIl need to be devel-crniments. A network of those mnstitu- pormcmoet t

oped. We offer these concepts and ideas astions-organized at the regional and na- an input for discussion and consideration oftional level-would provide a forum for all the relevant parties to this enterprise.the exchange of ideas and experiences.

* The diffusion of institutional change The reportthroughout the country will depend onthe speed and extent to which informa- Chapter one presents the evidence, collectedtion-on best practices and available through case studies of sixteen municipios,solutions for local governments-flows on local government effectiveness-andbetween municipios. Such dissemination problems-in the provision of water, educa-can be considered a public good that is tion and roads. Chapter two explores thecurrently being under-supplied. This jus- links between leadership and participation,tifies an active role by one or more na- on the one hand, and the development of lo-tional institutions although not exclu- cal capacity on the other. In doing so it re-sively by the central government. flects the lessons derived from the experience

In this approach, the many civil society ac- of the sixteen municipios. Chapter three re-tors-public and private, national, regional views the most significant initiatives under-and local-become the agents of change. The taken by municipios in order to enhance theirheart of the strategy proposed here is to en- capabilities, as they were identified throughhance the incentives for local governments to the case studies. In doing so, it considersfind and adapt innovations they need, to im- some notable innovations that are being in-prove the infovmation officials and voters troduced at the local level, as well as the ob-prove~~~~~~~~ th.nomto fcasadvtr stacles facin local governments in their ca-alike need to make informed decisions, and to g glet voter taxpayers at the polls, as well as pacity strengthening efforts. Chapter fourthrough other modes of participation, voice describes a strategy of local institutional de-their approval or disapproval for local per- velopment.formance.

xi

Chapter 1

Local government effectiveness: evidence from the front-line

For almost a decade now, Colombia has em- sentative of current events in the rest of thebarked in a process of state decentralization country. Nevertheless, the experience ofunder which municipios were invested with these municipios offers many lessons to oth-new resources and responsibilities for the ers facing similar challenges and constraintsprovision of such fundamental services as on how to build capacity.education, health, water and roads. Theirperformance will thus be increasingly impor-tant for growth, poverty alleviation and long In the second half of the 1980s Colombiaterm development prospects. The evidence initiated a process of decentralization andcollected for this report indicates that, to dif- political reform that reversed a long traditionferent degrees, these local governments have of centralism. Through the passage of severalmet the challenge of added responsibilities new laws, presidential decrees and a newand increased resources in a relatively effec- constitution, Colombia has dramaticallytive manner. The perception of generalized changed the framework within which its localcollapse in services following devolution to governments operate.2 Essentially, mu-local governments can be rejected, at least nicipios have now more resources, respon-for the municipios reviewed for this study. sibilities and decision-making autonomy thanSerious problems were observed in only a under the old centralized regime.

few places or in specific sectors. Resources. Since the beginning of decen-

Most of the local governments reviewed in tralization, municipal governments experi-the study have been able to face the chal- enced a sharp increase in resources-fromlenges posed by decentralization making use 2.6 percent of GDP in 1980 to 5.5 percent inof existing, but under-utilized, capabilities 1994 3 Under the new frameworkand through conscious efforts to upgrade (established by Law 12 of 1986 and Law 60them. In our view, responsible and innovative of 1993) transfers from the central level, as a

local leadership has been the driving force share of GDP, increased by a factor of three.behind the process of capacity building re- Laws 14 of 1983 and 44 of 1990, and thequired for the effective provision of services. 1991 Constitution made possible an increaseIntense community participation and growing in local revenues (tax and non-tax) from ap-civic involvement have expanded the range of proximately 2 percent of GDP in 1980 to 3.5possibilities open to municipios and provided percent in 1994. Municipios have access tothe basis to sustain local government capac- additional resources from the national levelity over time. through the system of cofinancing funds that

This chapter presents the evidence, collected have also been reformed and expanded overthrough case studies of sixteen municipios,1 this period.4 They also have access to credit,on local government effectiveness-and mostly through the banking sector and in

problems-in the provision of water, educa- some cases through the emission of bonds.5

tion and road services. It serves as a back- Responsibilities. Under the new system,ground to the core of the report: the analysis, municipios assume key responsibilities forin chapters 2 and 3, of the process by which the provision of services and the execution ofthese municipios developed the capabilities public expenditure programs. Municipios:required to perform the new responsibilities. * Administer pre-school, primary and sec-The cases reviewed are not necessarily repre- ondary education, and are responsible for

infrastructure projects in the sector. been incomplete and, probably, not condu-* Provide medical services through local cive to socially effective results.

hospitals and health clinics, and are re- The many legal and institutional reformsspnsble for infrastructure projects insponsible for infrastructure projects in promulgated over the last decade were meant

the sector. to speed the transformation of departments* Provide basic water and sanitation, en- and municipalities toward more effective

ergy and telephone services (directly or governments. However, the new arrange-through private sector), and are respon- ments are not vet fullv operative. Dlfferentsible for construction and expansion of

water andsewerage etworks.Ievels of governiment still need time to un-water and sewerage networks. derstand and adapt to the new modus oper-

* Promote and support low income hous- andi. In certain cases the speed and extent toing programs. which the legal and regulatorv framework

* Are responsible for urban and sub-urban changed creates a lack of clarity and limitsroads, and for agricultural extension the ability of local governments to respondservices and the promotion of rural de- appropriately. The consolidation of an envi-velopment. ronment propitious to the development of

* Acquire responsibilities in the areas of effective local governments will require con-environmental protection, culture, sports scious efforts to clarify the role and respon-and recreation. sibilities of each level of government. Addi-

Political reforms. The political environment tional time and better communication chan-within which local governments operate also nels are needed to build trust between theexperienced significant changes. Starting in different actors in the decentralization proc-1988, mayors have been popularly elected.6 ess.Changes in the electoral system for local of-ficials and members of Congress (such as the Local government effectivenessintroduction of the Tarjet6n7) have made the The evidence collected shows that a majorityprocess more transparent and fair. Citizen oThe revidewe molci shos are makgrit-

partiipaton wa als enhaced,both of the reviewed municipios are making prog-participation was also enhanced, both ress-often significant-in terms of provid-through legal means (Law 11 of 1986 and ing essential services to their population. InLaw 132 of 1994) and through the practice some cases, empowered local governmentsof several national programs, most notably were able to solve some previouslv untreat-the Plan Nacional de Rehabilhtaci6n (PNR). able problems facing their communities (seeClientelistic practices were weakened, among Box 1. 1).other means, by the elimination of the auxil-ios regionales.' Government accountability Not all municipios in out sample, however,was enhanced, for example, through the in- are examples of successful decentralization.troduction of the so-called voto pro- Some are experiencing serious problems ingramdtico (programmatic vote).9 one or more sectors. Nevertheless, even in

those cases, poor performance appears to beIt is the combination of the added responsi- grounded in a history of past inadequaciesbilities, more resources and political reforms and not the result of a collapse following thethat created the environment conducive to the transfer of responsibilities.emergence of effective local governments.The experience of the municipios reviewed Coverage and quality. The first patternfor the study leads us to believe that decen- emerging from the review is that the increasetralization of resources and responsibilities in resources managed by local governmentswithout the political reforms would have is starting to be reflected in more service

coverage. Overall, these local governments

-2 -

.ox El. A .d the water caine.. withresponsibility to the departmental enterprise.l1. 1. And- the- 'water camfe with . . . 2dec.ntralization: An .eneduco for San .and one to a neighboring municipality. The

.decentrallizationn: A,n acueducto for Sain. - . v

Juan N9epeniueno ' ' rest are managing the service through theWhen the first elected mayor took office in municipal administration. In a majority of1988 only 350 families wvere onnected to the cases, water systems in rural areas are con-: system; Water ran only 3 days a week and for structed with financial and technical helponly 6 .to 8 hours. The acueduct project Mis from the local government but managed by-launched'in 1984, but by 1988 only 5.5 out of the community without municipal assistance.the 32 km had been built as-the design kept- - -,,, . . ~~~~Increase in coverage was documented in

chning due to: the -lulcewann coaperation by1pchpanging duetothe lukeard'ooperation byth twelve cases." For example, between 1985.participant municipios and problems withan194Iilsnceedovrgfom6

'contractors. ' ' a~~~nd 1994 lp'ales 'ncreased coverage from 63.contractoTs.apercent to 96 percent and Puerto Tejada from

The. presence of elected mayors with a percent to 89 Pert. Sananstronger commitment to their electorate, to-,gether with an enhanced administrative- ca- Nepomuceno was able to complete a projectpacity. and broader finanicing alternatives, that brought water to 75 percent of themade,-possible the completion of the cicue- households in urban areas (see Box 1.1). Se-dado, ending almost. one hundred years of rious problems of quality and continuity ofwater shortages. The first elected administra- the service were identified in only six of thelion was. able to assurme the responsibility of sixteen cases. Manv municipios have madethe project by securing through an: agreement important efforts to improve water treatmentwith the deartmntal authorities ani the as well as to protect water sources. Some,relaed. nation:al entity, fth financial resources-raned admoinistrationofth,e projectal Bysouid-however, are not able to afford the cost ofanid adlministration of thle prject_ By imid-.'1990 the water was: finally arriving to 'San technically adequate solutions and have optedJuan. The second administration, aided by a for partial ones.strong. community: involvement, initiated Education. The changing legal frameworkmnajor works to. expandl the- system. By 1992, and the sharing of responsibilities with de-.850 urban dwellings were connected to thepartments has complicated the process ofsystem. The third- admninistration made prog- tmunicipal engagemnt in education. For ex-ress in impronng management of the mu' m ' gagn.icip.acompany in charge of tie s ample, teachers are hired by municipios and

Todyj San Juan Neponmeeno has 75 percent departments, that not always coordinate theirToderay, iih a ae.Alote:21actions. Nevertheless, ten of the reviewedc.overage ....c y i-n the urban arm& All of the1 261nrual dwellings in three corregindentos are municipios have a significant role in manag-connected to the system. Water service s ing the sector. Some of them are de factoavailable ever day for up to 19 hours and the running their education systems, showingwater quality meets the national standards. initiatives not only on school constructionSanpJuan is a leading contender.for the.de- and maintenance but in other areas such aspatment's annual prize for the best munici- teacher training, curriculum, planning andpa1 water system. administrative reforms.

took over the new responsibilities avoiding Progress in this sector is more difficult toservice collapse. gauge given the large disparity in coverage

indicators even among such a small numberWater.1 Eight of the sixteen municipios have of municipios. Some have achieved very highestablished municipal enterprises in charge of coverage at the primary and secondary levelthe water sector. Of those, four are finan- and the main challenge they face is to up-cially sustainable and two others have made grade the quality of education. Manizales, forsignificant progress in that direction over the example, has 97 percent coverage in primarylast year. Two others have delegated service (up from 83 percent in 1985) and 86 percent

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in secondary. Others, still have some impor- Similarly, a lot of progress was made in ex-tant gaps in coverage,'4 or show signs of in- panding and improving rural roads. Notablesufficient effective demand for their stock of examples are Valledupar, Cucunuba (whereschools and available teachers.'5 all veredas were linked), Pensilvania (where

Roads. Road construction and maintenance is 80 km. of new roads were built) and SanJuan Nepomuceno (where 200 km. of new

an area in which municipios have been very rural roads were built during this period).active since the beginning of the decentrali- The evids were edurin this lesszation process. The evidence collected shows The evlidence In the educaton sector Is lessan expansion in intra-municipal road net- compelhngworks, some important projects linking Within urban areas, we found repeated ex-smaller municipios to bigger ones, and con- amples of local governments that make par-sistent efforts to upgrade the quality of roads ticular efforts to address the problems of thethrough paving and other means. poor. Municipios as diverse as Manizales,

The case studies identified notable emphasis Pensilvania and Cucunuba are in the processon road maintenance in ten of the sixteen of introducing the SISBEN, a methodologymunicipios. In Manizales, for example, the used to target social programs to the poor. Inpercentage of roads in good condition in- spite of the large migration to its urban area,creased from 30 percent in 1991 to 60 per- Valledupar has been able to avoid the devel-cent in 1993. In Valledupar the creation of a opment of shantytowns through its many in-cooperative enterprise for rural road mainte- novative programs i the three sectors. Mu-nance made possible an increase in coverage nicipios like Pensilvania, Versalles, Piede-nance40 kmad posibe anpinreaseo n ourverage tcuesta and Zapatoca have introduced several

from 0 km.in th prevous fur yers to initiatives in the social sector with particular170 km. in its first vear of existence. In mphasis on the poor.tLibano the municipio was able to substitute emphasis on the poor.the Federation of Coffee Growers (which Sectoral balance. Overall, there appears toused to take responsibility for road mainte- be a balance in the sectoral emphasis of localnance) when the sector experienced a deep government programs. We did not find indi-financial crisis, and maintain the excellent cations that a particular sector is consistentlycondition of its roads. being favored or neglected. An exploratory

Distribution. A second pattern emerging analysis evaluating performance in the six-from the case studies is that, perhaps surpris- teen cases did not show large differences iningly, attention to rural areas increased over scores between the three sectors. The evi-this period. Overall, if there was a bias it dence does not support the view that all mu-appears to have been in favor and not against nicipios, and under all circumstances, prefer,rural areas. The data indicate that a signifi- for example, roads over education.cant part of the increased service coverage The emphasis given to water, education andtook place in rural areas. The expansion of roads, however, varies between municipios.rural water systems in municipios like Pen- In more than half the cases there is evidencesilvania, Zapatoca, Belalcazar, Ipiales, of important sectoral differences in perform-Piedecuesta or Valledupar was one of their ance.20 It is not unusual to find local govern-most notable achievements and reduced sig- ments concentrating their attention on one ornificantly service gaps with urban areas.16 two sectors at the expense of the rest, with aFor example, since 1985 coverage of water tendency for education to be the "odd" sec-services in rural areas increased from 20 to tor.2 '70 percent in Ipiales. and from 43 to 74 per- The observed sectoral emphasis does not

cent in Zapatoca. seem to follow a random pattern. Although

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the evidence does not allow a rigorous as-sessment, it appears that, relative to larger Box 1.2: What doicitizens think'municipios, the smaller ones tend to empha- In Afanizales, 74 percent of the people it'ier-size wat+er and to a lesser extent roads22. This viewed believe services improved since the

is possibly tpopular election of mayors, 30 percent of.the.IS osbly the reflection of local prnor't'e ... . .. -....individuals indicated that an imporant sectot

as, at the beginning of the decentralization had not received sufficient attention (street.period, most of them experienced serious sfety for 62 percent of those), and oy 8

23 gaps in those sectors. Opinion surveys con- percent thought an unimportant sector wasducted for this study tend to support the view emphasized.that, in general, the sectoral allocation of In 1"alledupar, 78 percent of those polled:resources is consistent with community pref- thought performance improved since theerences.24 At least in one case, insufficient popular election of mayors. Only. 10 percentcapacity forced the local administration to believe the wrong sectors are emphasized andconcentrate its energies on one sector identi- 91 percent trust the municipal administrationfied as prioritv.25 more than the national government. Almost

70 percent indicated the local administrationThe observed pattern may also be partially makes efforts to do projects at the lowest cost,influenced by the legal and administrative and 80 percent are willing to contribute withframework. Law 12 of 1986 and Decree 77 labor, materials or cash to public programs.-of 1987, which led to the liquidation of INS- In Pensilvania, local administrations haveFOPAL, to a certain extent forced mu- made a consistent effort since 1988 to consiltnicipios to concentrate attention on the water citizens on priorities for governmenitactions.sector. Law 60-which imposes a mandate This effort is reflected in high satisfactionfor municipios to allocate at least 75 percent levels. As onc participant in a communityof transferred resources on investments in workshop said "the popular election of may-

educatidwater-is also likely to ors was a blessing from God", All of thoseeducation, health and attending the workshop believe the allocation'

be influencing the sectoral emphasis of local of government expenditures amo socialprograms. The extent to which these rules groups is fair. 84 percent indicated that themay be forcing municipios into a sub- allocation of expenditures between rural and.optimal pattern of allocation is an extremely urban areas responds to needs and not to.po-important question that deserves to be ana- litical factors.lyzed in more detail in future work. Surveys indicate that citizen satisfaction is

Citizen satisfaction. A key element in our lower in Zipara than in other municipios.Onlv 31 percent of the individuals perceived

assessment of local government effectiveness O 3an improvement in municipal performanceis associated with the views expressed by since the election of mayors, and 20 percentcitizens. We collected evidence through believe it has worsened.. One third of thoseopinion surveys in the four largest mu- surveyed indicated that performance in thenicipios and through workshops with the road sector is now worse than six years ago.community in all sixteen cases. Overall, thecommunity recognizes that progress has oc- three cases showed signs of low satisfactioncurred. For example. approximately three out in two or more sectors and, in general, withof four individuals in Manizales and Valle- local govcrnment performance.dupar think services improved since mavorsstarted being elected bv the people. In five of Opinion surveys show that a majority of in-the municipios the surveys and workshops dividuals see municipal governments playingidentified high satisfaction levels consistently a central role in the provision of the threeacross the three sectors (see Box 1.2 for services.6 An overwhelming majority ofsome examples). On the other hand, only those surveved report they trust more the

local than the national government: more

than 90 percent in Valledupar and Mani- ployees. For example, the cost per kilometerzales, almost 75 percent in Ipiales, and al- of a street paving program with communitymost 60 percent in Zipaquira. A larger num- involvement in Valledupar was one third ofber of individuals prefer the municipio, not a the cost of an alternative program.28 Evi-higher level of government, to be in charge of dence from Cucunuba and Versalles indi-service provision. The only sector in which cates that community involvement in con-there seems to be support for the involvement struction projects in water and roads reducedof departments and the national government costs to the municipality by 50 percent. Ipia-is in education. In roads and water, citizens les was able to conduct a major overhaul ofsee the private sector playing a more impor- its water system with half the budget as-tant role than departments and the center. signed by FINDETER for that purpose.29 In

a few cases, it was possible to find evidenceCost effectiveness. The case studies also indicating that municipios were able to makeprovided some limited evidence on cost-effectiveness. The first thing to notice is the substantial savings with respect to similareffetiveess.The irs thig tonotie isthe proj.ects done by the department.30fact that the field work did not identify noto-rious examples of 'white elephant' type of It is hard, based on this evidence, to makeprojects, even among those municipios more conclusive judgments on just how cost-attached to old-fashioned clientelistic prac- effective local governments are in the threetices. In very few occasions did the opinion sectors.3" Nevertheless, we did not find evi-surveys or workshops with the community dence that would lead us to believe there is ashow a generalized perception of grossly in- trade-off between 'doing the right thing' andefficient spending or official corruption.17 'doing it the right way'. In general, mu-

A second consistent finding is that those nicipios that are effective in increasing cov-construction projects-in road principally erage for all their citizens and maintaining a

but in some cases also in water and educa- balance between sectors have also shown antion-that involve community contributions aptitude and an inclination to contain costs.in labor, materials or cash, and for which Resource mobilization. The evidence indi-there is community supervision, result in cates there are large differences in local re-substantial savings with respect to similar source mobilization among municipios. Taxprojects executed directly by municipal em- revenues per capita among the sixteen mz-

Betee n 19S9 and19940 Valledua trid tx reveesand quduldit Wbude in mrea 0temthoh

.a st;rategy !of.'accountbility.:aind transparency with he :commaunitly. :Collectitniu of valorization itaxes tin-;=rae oal stxaessaw how their taxes were spent. lntspit fbing anoele s.ciAfotionya,the gy

integralteby representatives of interested parties gdiscussed options gand built consensus: for: tthe surcharge.:To- regan tpeople'strust 0on; goerenment'st ability to l;delver, thet :new 0admnstraton tht took office inlMeo-tak1W-s i 92om!;isged ocmpletes:in¢fve mnh the AA~enidadeRIopo ject rhutwaSs talled fr}seeral years.; Successifill: and- timnely. tcompletion iofl -the -project .broughthigher. conidence: iand ::set Mthe

:fX -dations f.or a- stronger ;partnership: w00ith th omnunity. Dublin g Xits fiscal base: and: reducing: tax;.e.v.asi.on ani... es..able.toi.rease ' its bde subt ove thi erd.. l

.Thie urban -area iof iPiedeczrestaepded frm 300} tog 2,300. blocksover :the last decade The adinistra-lti4n EcedtheA challenge of inreasetddemmad-for sevice a creative manner.. Through negotiations,de elopezsj took respo:nsibiility for basic :urban:inftuctue, reducng 7d:emands; on the fiscally trhainedmunidpipo. Improvements were ireflected in higher Xmarke prices.Piedecuestat increased tproet ita col-;l n by a fictor of five::since: 199w. lA: "landll0;i'@e usa one time. c la;gf n e ee lopme ts) waii.mse tofi nacsoilinrradtcre heth. andveduction)inthoe . nehborho ds.d.

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nicipios vary from a high of more than increasing collection on property taxes, im-Col$19,000 in Manizales to only Col$500 posing a gasoline surcharge and betterment(less than one US dollar) in Puerto Nariflo levies-linked to the expansion in service(see Table 1.1). Even among municipios of coverage and quality. In nine of the sixteensimilar size, significant differences are ob- cases, tax revenues in real terms increasedserved.33 well above population growth in the period

In part these differences naturally reflect analyzed. In general, these were the largerr municipios In the sample (see Table I .l).

variance in fiscal capacity. as in the case ofManizales and Puerto Narifio. Also, tax National transfers represent between 80 andrevenues are probably an incomplete measure 90 percent of current revenues in the smallerof local resource mobilization in small mu- municipios in the sample, and approximatelynicipios where contributions in-kind (mostly 60 percent in the larger ones.34 This ratio isthrough community labor but also with ma- relatively lower in municipios like Piede-terials) to construction and maintenance cuesta, Manizales, Valledupar, Jamundi andprojects can be quite important, as already La Mesa that have made important revenuesuggested. Thus, tax revenues are likely to mobilization efforts during this period (seeoverestimate the differences between large figures on growth in tax revenues in Tableand urban municipios. on the one hand, and 1.1). Their experience (described in Box 1.3)small and rural ones on the other. suggests that local governments which are

Nevertheless, the evidence indicates that fis- perceived to be effective by their communi-cal effort indeed varies. Some of the mu- ties are in a stronger position to mobilize fis-

cal effort indeed varies. Some of the mu- clrsucslclvnicipios have made significant efforts inmobilizing local resources-for example,

Table 1.1: Local resource mobilization

Municipio Transfers as a share of Tax revenue per Growth in realcurrent revenues capita 1 tax revenues

(1993) (Pesos, 1993) (1989-1993)

Manizales 39.1% 19,167 49.2%Valledupar 51.5% 9,434 121.3%

Ipiales 82.8% 4,780 62.4%

Zipaquira 67.0% 8,737 76.6%

Piedecuesta 60.8% 6,729 231.6%

Jamundi 58.8% 14.231 66.2%

Libano 71.1% 5,431 (.0%

Puerto Tejada 79.0% 4,297 69.2%

Pensilvania 90.7% 4,052 60.2%

San Juan Nepomuceno 88.6% 1.304 -26.7%

La Mesa 45.4% 7,412 188.3%

Versalles 87.9% 2,702 0.3%

Belalcazar 65.2% 5,383 -6.4%

Zapatoca 85.1% 2,835 12.7%

Cucunuba 77.8% 1,452 -62.9%

Puerto Narifno 98.1% 517 -12.0%

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The key questions

Overall, the evidence presents a positive rec- 5 See Fainboim and others (1994).ord of municipal performance. The small 6 The 1991 Constitution introduced the elec-number of cases reviewed is obviously in- tion of Governors.sufficient to speculate on national trends. 7 Under this system, voters receive their bal-Nevertheless, the experience of these mu- lots at the election cite, thus reducing op-nicipios suggests that municipal governments portunities for vote manipulation. Ballotscan be more reliable service providers than it include photographs of candidates.is sometimes assumed. 8 A significant quota of the public budget

Any analysis of local government perform- allocated to members of congress and otherance must necessarily lead to a discussion of regional officials for their own discretionaryexisting capabilities at the local level and the use within broadly defined criteria.conditions for their development. It is only 9 All mayoral and gubernatorial candidatesnatural to ponder whether local governments must present a government program to beare up to their new jobs and how they acquire later used to assess their performance.new capabilities. After all, under a central- '0 Annex 3 presents the conceptual frameworkized regime, local governments do not gen- on which the case studies were based.erally exercise the capacity they might have, See Annex 4 for additional evidence onnor face the incentives to develop it further. municipal performance in the water sector.

These concerns can be summarized in two 12 The water systems in Belalcazar and Ja-key questions. First, what are the main forces mundi are managed, respectively, by EM-driving the process of capacity development POCALDAS and ACUAVALLE. Piede-at the local level? Are they, principally, local cuesta delegated responsibility of its waterin nature or, on the contrary, mostly external system to Bucaramanga's water company.to the municipio? Second, will motivated 13Among the other four cases, Manizales,local governments have the means and the Zipaquira and La Mesa already had close toingenuity to upgrade the required capabili- 100 percent coverage in urban areas inties? The experience of the sixteen mu- 1985. Valledupar did not show an increasenicipios reviewed provides answers to both in coverage rates (above 90 percent in urbanquestions. Chapter two addresses the first of areas) but was able to maintain them inthese questions. The second one is the subject spite of high population growth.Of chapter three, which considers the differ- 14 This is not necessarily the result of insuffi-ent ways in which municipios have upgraded cient effort in the past. Piedecuesta, for ex-their capabilities and the problems they faced ample, is experiencing migration of suchin doing so. magnitude that it is having a difficult time

reducing the coverage gap although enroll-ments increase at 8 percent annually.

Annex I includes a list of the municipios 5 Thisappears tobe the case in PuertoTejadacovered and the selection critenia used. and Belalcazar that show very low retention

2 Annex 2 includes a brief description of the levels. See Villa (1995c) and Palenciamost important components of the new (1995a) respectively.framework of decentralized governance. 16 Pensilvania built 15 acueductos in rural

3 Sanchez and Gutierrez (1994) and Diaz and areas that now have 75 percent coverage.Sanchez (1994). Belalcazar built six new rural acueductos,

4 and rural areas have now 90 percent cover-For a discussion of the system of cofinanc- age of water. Valledupar constructed acue-ing funds see World Bank (1994). ductos in 12 out of its 17 corregimientos. In

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Piedecuesta coverage of water systems in 25 This appears to be the case of Piedecuestarural areas increased from 23 percent in discussed in Chapter 3.1990 to 48 percent in 1994. 26 See Annex 6 for details.

7 This is, in part, due to lack of information. 27 s aIt has been difficult to obtain data that dis- However, opmnion surveys among the fourcriminates between urban and rural areas largest municipios show that only in Valle-for the education sector. Nevertheless, sev- dupar there is a generalized perception thatfral thedunicaion shoetor Nevtheesis, ex- the municipal government makes efforts to

eral munciplos howed anemphasi in ex-do projects at the least possible cost.panding school infrastructure in rural areas,particularly at the secondary level. For ex- 28 See Cirdenas (1994c). This program is dis-ample, Valledupar built three new ba- cussed in some more detail in Chapter 2.chilleratos agricolas. and Ipiales and 29 See Villa (1995a).Piedecuesta onc new secondary school inrural areas each since 1988. 3 For example, in La Mesa, municipal road

Pensilvania, for example, introduced 52 projects cost only 70 percent of those done

Hogares Comunitarios de Bienestar. a very by the Department.interesting social program. Piedecuesta in- 31 Financial indicators for the water sector (seetroduced the UJnidades Basicas de Servicio Annex 4) show a less than satisfactory pic-which provide health, social and community ture. With few exceptions municipal com-services in low income neighborhoods. panies experience large operative deficits,

19 See Annex 5. The dispersion in perform- probably as a result of low tariffs. For those

ance between municipios is similar for edu- cases in which information is available, un-cation and water and slightly higher for accounted for water is acceptable comparedroads. See Acevedo and Fiszbein (1995). to Colombian standards. Collection rates

are good or acceptable in six cases and low20 See Acevedo and Fiszbein (1995). in the rest. Important efforts were identified21 . . . recently in this area: San Juan Nepomuceno

Piedecuesta and Zipaquir) the education increased collection rates from 20% to 70%

sector receives preferential attention and, and Valledupar from 50% to 94%.correspondingly, the one showing the best 32 This can be seen in Annex 5, which indi-results. On the other hand, in two mu- cates a high correlation between scores fornicipios (Belalcazar and Libano) its shows allocative and production efficiency.an inferior record to the other two sectors. 3 For example, tax revenues vary by a factor

22 See Annex 5. of two between Zipaquira and Ipiales, and

23 During the late 1970s and early 1980s, in San Juan Nepomuceno tax revenues aremany small and medium size municipios, one third of those in Pensilvania.experienced popular protests (paros civicos) 34 Current revenues in Table 1. I exclude thosedue to poor services. These protests consti- of municipal enterprises. Thus, dependencytute an important precedent to the decision from national transfers in municipios thatto decentralize resources and responsibili- have such enterprises tends to be overesti-ties. Thus, many mayors were elected with a mated relative to the rest. For example, inmandate to address those gaps. 1994 transfers represented 27.8 percent of

24 .current revenues in Manizales. If one wereOnly 8 and 10 percent of those surveyed inManizales and Valledupar, respectively, to include municipal enterprises, transfersindicated that in their opinion a particular would represent only 13.3 percent.sector was receiving too much attention.The same percentage was higher in Ipiales(19.5 percent) and Zipaquira (31 percent).

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Chapter 2

Leadership and participation: the emergence of local capacity

In our view, the emergence of local capacity assisting role but. in most cascs. followingis closely associated with the new environ- local initiatives.ment under which municipios operate. Re- The links between leadership and participa-cent revivals of the political and governance

aspect of Clombin insitutins- ton, on the one hand, aiid the devclopmcnt ofaepliet of Coplo a elstttotions- local capacltv on the other, constitute the

exemp'ie btheme of this chapter, which reflects the les-ors, the 1991 Constitution and changes inelectoral rules-have created a new svstem sons derived from the experience of the six-

teen municipios reviewed for this report.of incentives and have heightened competi-tion for better performance in local govem- Local leadershipment.

A reduction in clientelism and more transpar- The case studies found again and again that

ent and fair electoral practices, have con- local leadership-most notably by mayors,

ferred more legitimacy to the leadership role but also by community leaders, private sectorof mayors in the public's eye and made the individuals acting in the pubic interest, or

position more attractive and competitive. A political movements (see Box 2.4)-emcrgedimportant result has been a renovation in as a key part of the explanation of local ca-

municipal leadership. A majority of the mav- pacity. Few 'f any municipalities showed

ors that were in office in the sixteen mu- much capacitv without strong leadership. For

nicipios at the time of our visits, could be most, leadership was a sine qua n0n in theconsidered 'political outsiders', with back- launching,*and figured importantly In tllc

grounds in the private sector or coming to the sustaining, of capacity building.

public sector as professionals or through The role played by responsiblc and inlova-civic movements independent of traditional tive leaders in strengthening the capacitv ofparties.' With decentralization municipal local governments is complex. In the firstpolitical life has become clearly more local in place, a mayor (or the head of a municipalnature increasing demands on new leaders to department) is in a unique position to moti-respond to their communities. vate the local administration to improve its

The experience of the cases reviewed for this performance and, as a result, generate the

study indicates that competition for political demand for capacity enhancing activities.office has, in many cases, opened the doors Second, as a manager he/she becomes a keyto responsible and innovative local leader- element of municipal capacity. This is par-

ship, and this, in turn, became the driving ticularly true in smaller municipios where theforce behind capacitv building efforts. More mayor is often the only full-time professionalwidespread communitv' participation and working for the government. Thus, when re-growing civic involvement have expanded the viewing the evidence, one needs to considcr

range of possibilities open to municipios and the several ways in which mayors (or otherprovided the basis to sustain local govern- leaders) contribute to capacity building.

ment capacity over time. Leadership and This leadership function has a double facet.participation have, thus, consolidated corpo- First, reforming the municipal administrationrate strength in local governments. Once the into more effective and customcr-orientedoverall institutional framework was in place, institution involves a leadership role internalactors external to the municipio played an to the organization. Second. achicving trust,

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lenge for the local government is to makeYers, siEks Com"it leadership ' '""'"''"" ''"''"-effective use of the under-utilzed capabilities.A. .. . d by . th .n.......a... gvrm existing within the administration. In manym.andat19w. ,,ired ,, thatal muiciios. create a , Cn, cases, it is possible to increase government

m ty Paticipatioi .Committee (. PC) fo; performance without major new investments,:-each health''facility,' which include represen- simply by making more effective use of latent,taties of community organizations, thE local capacity. This phase, in all cases, was asso-gover ment and the mucipal'council. Under ciated with strong leadership by the mayor.

e leadership ofthe local hospital dirtor, The case studies show examples of how:the CPC of Vers.alles became the main -source.,o.f l:c,al:,innovaion and citange, replacing an mayors with an entrepreneurial spirt were.ineffective mumucipal: administration. Txhe able to unlock latent capacity in the localPC'.mobilized the community and launhed: administration. For example, municipal staff

several. effective and low-cost. prograns .to in Valledupar reported the motivational boostad'dress. issues of ialnutritionr and family generated by a mayor that starts work at 6:30.'w,e,'lfa.re. ' - ' , a.m. every day of the week.3 Similarly, theThe relationship with the mayor has not al- first elected mayor in Ipiales discovered, toways been easy, The 1990-92 administration his amusement, that while his office wasprovided strong financial support to the CPC practically non-existent, the municipality wasprogr 'ams and promoted it at the depatmental renting out-at a notional price-a perfectly.:and. national level as a model of community adequate building as a hotel. Simply by end-paipatie- This upptdsappear'eid dw- ing the lease and moving the municipal ad-ii Z the~ followin aidminijstration, as the.mayor was convinced the CPC diminished his minstration he was able to improve workig'-powei.'Wh .. moralea .. .. unicipalwo k- conditions and staff performance. On thepower, While morale amnong mu~nicipal work-e was. very low .due to a lack.of leadership, other hand, in those cases where the mayorthe 'CPC provided the space for effective par- himself is not sufficiently motivated, thoseticipation by community members. Thus, latent resources remain under-utilized.4

many of those individuals that have become.i:ictve worcin inthe-pulixsecor reExpanding horizons. The most obvious wayine0ffetive Working in the, public siector. arc

.ac.tive. .and motivated participants in cPC in which a new mayor can expand the capac-ity of the local government is by providing

... essential skills not previously available. In

mobilizing community resources and sustain- small municipios the mayor is very often theing those reforms efforts involve a leadership only full-time professional working in therole external to the organization. Thus, as the administration.5 As some of the cases in theexperience of these municipios illustrates, study clearly illustrate, the effectiveness andsuccessful leadership involves both manage- capacity of local governments in this group,

6

rial and political skills. In many cases, the is closely associated with that ofthe mayor.tension between the two facets was found to But, there is latent capacity outside the pub-be very strong. lic sector too. Expanding government capac-

The rest of this section describes some of the ity by drawing upon resources outside thekey aspects in which successful leadership public sector is possible only when the ad-was found to have a positive impact on local ministration achieves trust and supportcapacity. These aspects describe the diverse within the community. In almost every case,challenges faced by mayors and other local this was associated with new leadershipleaders. making use of its recently acquired legiti-

macy. It implies bringing new-well quali-Breaking the inertia. In an initial phase of fied-people to work in the local administra-the capacity building process, the main chal- tion,7 and drawing upon the community, as

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.. . .......... .. ..... and. challenge is to adapt the municipal organiza-Box i;2. V.ilence, deentralization. tion to more complex and diverse tasks. Thisl.ocl.. caaity requires a clear definition of responsibilitiesEn some. regions.ofC.olombiawhere.the pres- and the delegation of authority, among other

Eoenc::.gu Sela; | grou scannot ebe Edise ..ene ....of guerrllgrs cannot-beoisre steps. The mayor becomes a manager and theadd.volec lACIimit the capacty Iofloca

tggoverinmtents. DefXcentralization,- and the mim-: leadership function is distributed among sev-tiative of newlocal .leaders;allowed some- eral individuals. This proved to be a difficultcommunities to workw.ith -authorties and step for some municipios as it requires arebel groups, minimizing the impact of vin- change in leadership style (see chapter 3). Inlence on local capacity and performance. For: that sense, it could be argued that leadership:examnple::E: : g; E X Q : S g i -plays a key but different role at various

In Zapatc, fthe armed conflict reached its stages of the capacity development process:highest:point twith the assassination oft the launching it requires, mostly, drive and clar-second elected mayor. ;The :third election:. in ity of objectives; while consolidation and1I992: implied atchange in leadership. The institutionalization require managerial skills.

-new mayor organizedtown meetings in thef The case studies provide some empiricalrural -areas and invited the. communities. OnsomE cs E s participate support to this hypothesis. Further and morexsomc... axca$I O I:::armed: groupsi:pArctptdXestablishingi an: open dialogue on the mnunici-detailed analysis of this pattern could help6ftaDliSh1eAn.A open W6 oEu on the muncl-.

pal govern. ent.program..Today;people an:d understanding the changing role played bymerchandise tcirculateb : freely in rural areas, mayors.an municipal programs are implemented Managing conflict. This is an area inaiwtd}:ioui: prog:draimcns:: aE i:~p ii t 0dwithout mj dErles, . .. which leadership by the mayor can have a

In Val-lecdprr,the presence of armed groups significant impact. In several municipios ca-has beenistrong and permanent in some rural

.areas, d i localandnational.go pacity building efforts have lost effectivenessernments. The :.popular election.ofIn..ecto- as they are rejected or, worse, battled byresE: de PBolica (see Bo.xt 2.3) changed!t that.;: other powers in the local political scene. TheThe strong link: inspectores have to their best example is the poor relationship betweentcommunities allowed to solie problems in a mayors and municipal councils found in mostimore texpeditious way, sometimes without cases. Few mayors have been able to develophavingto resort to local or national.authori- a working relationship with the council, butties. PNR hasSplayedan importanturole facili- in manv other cases conflicts and obstruc-btting communications:betweent ruralIcor- tionism have weakened local governmentimunities and: the local governlment. Tfhe re- | capacity. In the tvpical municipio councilsuit has:been a reduFction in Xviolencelevels members have very few operational respon-and an: increase in: the capacitv of ithe localadministration; to im.plement.. much. needed sibilities, which are concentrated on the ex-development programs :in therural areas of ecutive branch. As a result, council members

i:Valledupar. : : :7: :: :: X : C :l ::: l tend to exercise power in a negative way by_:__:__. i:. __i_ii__. i :..... .... ._ . :. . imposing clientelistic practices in hiring

(cuota burocratica) on the administration.well as the private sector, to perform someactivities.8 In Manizales, for example, a new The ability to manage this type of conflict'Omunicipal administration was able to acquire becomes a key role for the mayor. The casea high level of legitimacy through the com- studies show a variety of experiences. Inpletion of a long delayed project (see Box some cases, the conflict between the mayor1.3) benefiting all of the different aspects of and the council practically impeded any pro-its government program." gress in the process of capacity develop-

ment." In most places, however, a certainManaging complex organizations. In larger modu.s In d ev er w chtaingand/or more advanced municipios, a key

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continues but, probablv, conditioned andlimited. Valledupar presents an interesting Box 2.3: Innovations in community partici-

pation: the experience of Valleduparexperience of integration between the two patio nce o V eleparbranches of municipal government. The Community participation has become a cen-

terpiece of Valledupar' development. In thecouncil was part of the effort to modermizc municipal offices, staff we identificationthe municipio as council-members were in- nncplofesstfwariniiainbadges which say: "We govern with yourvolved in the process of strategic situational Participation". The local government hasplanning (presented in some detail in chapter actively promoted community participation.3) that transformed municipal institutions. The Mayor established a Press and Infoirma-

tion Office that disseminates governmentCommunity participation programs through, for example, a 30 minute

daily radio program. The community is in-Participation by the community- volved in several areas. A few of the rnostindividually or collectively, through formal notable examples are:and informal channels-voicing demands, Starting in 1992, the Mayor named Inspecto-making choices, and being involved in proj- res de Policia in the 14 corregimientos basedects proved to be as important in sustaining on the results -of popular elections. This hascapacity as leadership was in launching it. been an unique event in Colombia since theThe presence of an active communitv in- law grants mayors the rights to designatecreased demands for effective local govern- them without any consultations. As a result,

rllents generating the incentives for capacity the profile of the Inspectores has changedments, from a political appointee responsive only tobuilding. In other words, communltv partici-

pation~~~~~~~~~~ fregoeietacutbly. At the mayor, to one of a commniuty representa-ptofocdgvrmni. ttve acting as a liaison with the administra-

the same time it broadened the resources on tion.which the municipal administration could TfThe Pavement bry Se.l>-Manqgemnent programhdraw upon to Improve ItS capacitv .-. has the objective of improving access roads inThe evidence from the case studies indicates, the barrios, Interested communities contrib-however, that the extent to which community ute with materials and labor. The municipal-participation became part of the process of ity provides technical assistance and the nec-

essary equipment, and is responsible for thecapacltv enhancement depended crnticallv on.. -..capacity enhancement depended critically on street lighting and trees. Participants get athe inclination, and to a certain extent bold- rebate on their property taxes.

ness~ ~ ~ ~~~~~~~~~~~rbt of their propertytlon taxes.erness, of local administrations. Recent legal The alcaldifos program has the objective ofand political reforms have multiplied options instilling civic:conscience and nurture a par-through which the participatorv tendencies of ticipatory spirit among young citizens. EachColombian society can be expressed. The school goes through an electoral process tochallenge for local governments has been to elect an atcaldito that represents the schoolopen their administration and encourage for one year. Elected candidates must formu-community participation. late a government program. The Secretariat

of Education organizes periodical meetings-To different degrees, and through alternative with the mayor and the alcaldifos to discussmeans, the municipios in our sample have their programs and agree on ways the gov-followed this path. In some cases, this ap- ernment could support them.proach to public policy has been followedacross the board as in Valledupar (see Box toward the possibility of opening participa-2.3), in others mostly in one sector as in the tory spaces.case of education in La Mesa, or independ-ently of the municipal administration as in Although no simple correlation can be estab-Versalles.'2 Finally, some local governments lished between the strength of communityhave shown lack of interest and/or mistrust participation and government performance,

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the experience of those municipios that have tions led to local government action in thefollowed a more open and inclusive approach three sectors."' Voice has also increased localto public policy indicates they have benefited government capacity by facilitating the taskin terms of enhancing their capacity, posi- of ranking priorities and identifying problemstionmg themselves to achieve better out- of implementation. The process by which thecomes. To their experience we turn now our community expresses its voice in larger mu-attention. nicipios is, in some ways, more complex

Voice. The consistent expression of com- than in thc rest. It requires outreach effortsmunitydedpreferences-voice-is on the part of the administration. The elec-

munity demands and prfrne-oc-s toral process also acquires a more centralan important factor explaining the develop- role in this area as it may replace more in-ment of local government capacity. Voice has rml chanels of ex res lae armade local authorities more accountable to p

offers good examples such as the reaular usecitizens increasing the political costs of inef- icficient and inadequate public decisions. As a of radio programs to communicate with theresult, it made local governments more inter- population and the introduction of the popu-ested in changing their administrations and lar election of inspectores de policia.personnel to make them more effective. In Table 2.1 presents some of the most notableseveral cases, protests and civic mobiliza- examples of how community voice has per-

Table 2.1: A sample of experiences with community voice

Survey I Consultation [ Empowerment

Local government actively seeks Local government involves Local government promotesinformation on community needs, community/citizens in decision stronger community groups byproblems and ways of addressing making through formal chan- delegating responsibilities andthem. nels. acceptin community initiatives:. Bi-annual surveys of needs of * Committee for sectoral . Active Community Partici-

all households in Pensilvania evaluation in La Mesa and pation Committees (CPC) in(see Box 2.4). Valledupar. the health sector in Ver-

• Annual consultation on edu- . Special purpose commis- salles. La Mesa, Ipiales andcation needs in La Mesa. sions in La Mesa (for tariffs) Zipaquira.

. Water company regularly and in Valledupar (for . Comite Autogesti6n de Vivi-surveys customer views in gasoline surcharge). enda in Zipaquira.Manizales. . Sectoral plans for education . Unidades Basicas de Servi-

* Mayor holds regular cabinet with community participa- cios and Ciudad Educadorameetings with neighborhoods tion in Zipaquira, Ipiales, in Piedecuesta.groups to discuss needs and Manizales, Valledupar and . Empresa Comunitaria Laproblems in Ipiales. La Mesa. Uni6n involved in multiple

. Periodic follow up with com- . Comite Municipal de Re- projects with municipal rec-munity groups of status of habilitaci6n (PNR) deter- ognition in Piedecuesta.projects identified by citizens mines chronogram of road . Municipio pays for a privateas priorities in Piedecuesta. work in rural Valledupar, firm to organize and coordi-

San Juan Nepomuceno and nate community involve-Puerto Tejada. ment in rural water system

. Annual inmestment plan in in Jamundi.consultation with Juntas de * Cooperativa vial-rural inAcci6n Comunal in Puerto Valledupar.Tejada and with Curacas inPuerto Narifno.

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thcm. The second column shows the multipleBox 2.4: The community influences wavs in which the communitv is becominggovernment programs: the experience of involved in decision making at the local level.Pensilvania Finally, the third column presents a few ex-At the beginning of the first elected mayor's amples of programs run bv the communitvterm a survey was conducted to see whether that have either been promoted or supportedthe government's program addressed the ..cormunitv's priorities and needs. The sur-vey identified serious differences between the dressing concrete needs-such as health orprogram and the communityv's expectations education-these programs have become aleading the mayor to change his program. very powerful source of community organi-Due to the success of the survey, the zation with an impact well beyond their fieldMovimiento Civico (the civic movement in of operation.office) adopted it as a useful tool to help it . . .define its political program for the upcoming In several municipws PNR played an impor-election. Since then, the Movimiento has sys- tant positive role in fostering participationtematically applied the survey and used it to particularly in rural areas and among poorreshape its political program. communities, organizing formerly disenfran-

The survey is carried-out on a bi-annual basis chised groups and helping them voice de-and is divided in two big sections. In the first mands and acquire a space in the local politi-section the comrmunity evaluates the current cal debate. PNR's experience is very relevantadministration's performance with special as it is the only national program for whichemphasis on works done during the current the case studies found a generalized recogni-period. The second section addresses fiture tion among local communities of a positiveprojects. It asks the community to list and role in fostering capacity.rank works and program that the next ad-ministration should undertake. Involvement. Direct community involve-For mayoral elections, all the AMovitniento ment-in construction and maintenance proj-Civco pre-candidates elaborate their pro- ects as well as operating services- was agrams based on the Movinfiento's program strong factor behind the success stories in(nurtured by the surveys), addressing similar these municipios. The practice of communi-issues with different emphasis. The mayors ties contributing labor and materials for pub-usually developed a strong managerial leader- lic projects increased not onl the availableship but the political leadership remainswithin the movement. For the community the resources but also cost-effectiveness and user

. . ~~~satisfaction. Bettermnent levies and othersurvey represents a strong comnmitment of the tisfaco Bettemnt lve a other'Ilovimiento to futlfill. to the extent possible, types of cash contributions had a simlar im-

their demands. pact in larger municipios. More generally,the practice of working with the community

formed as a wa' to enhance local government was itself a learning process through whichcapaclty. These experiences. which range municipal staff acquired new skills and moti-from the relatively informal to the very so- vation.phisticated. give a sense of the possibilities The experience with involvement is ampleavailable to local administrations that are and, as in the case of voice, varies accordingopen to commnunity participation. The first to size. Some of the examples we reviewedcolumn shows cxamples of instances in were based on practices that predated decen-which local governmenits have established tralization. For example, the current use ofchannels through whiclh the community is Mingas in Ipiales (see Box 2.5) is based onable to express in a systematic way its needs ancient indigenous traditions. However, evenand problems These have become key tools in those cases, strong commitment by thefor the local administrations that are using new administrations gave them new life and

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mainstreamed them by making them part ofthe local government's programs. Themb i, i............

:The: mingas. constitute .. an .iportant part. .of.In smaller municipios and in rural areas, the socil anid community life i Ipiales. T:h.eypractice of communities sharing the cost of QoTiginat,edin the'pr eolonialDpeTIod a'nd aare.projects through labor or materials is almost :most presentl in 5t sou'therM 0pt ofa rule. However, some larger municipios like QCoombia, where theindian heritage .asIpiales and Valledupar have maintained the e6dred. dCitizens joinwioth local autlntiespractices of community work (see Boxes 2.3 in carrying out a specific task that: wil be ofand 2.5). This type of involvement is ob- general .benef.t..t.a...g..bor .od o. .th

communiti.y.: EEThese tasks :often comprise. -teserved more frequently in the road and water .t .ri a .d . .....t e o .es... ..........constructlon.ii .and.:Eg ~~malea,c ..... .. : .. .. d,sectors, although there are several examples roads water and Slectri1ication systems.of community involvement in school con- Usually ' the t0000government- ; providesi l-. thie'struction.' In larger municiplos labor con- .technical sSupport and :construction-m,ateiaXls,.Xtributions tend to be replaced by cash contri- 'and l.the.:c,ommunity i0contributest: labor t,;force,lbutions. La Mesa, Valledupar, Manizales, igand lmat'erials. :,It ,:also lEprvie fo,s|'0odl a,nd.Jamundi and Piedecuesta use betterment lev- t beverage to minga partic~ipants ................ t$Pa¢tic.patio'n'ies and other means of beneficiary contribu- 0 is so 6 strongly embdUedded i}n ,dthe ,comimiu, nittions to construction and maintenance proj- thsa:t itis not uual tohave severals.enoi. .. ..................... tects, that generate citizen ownership and re- ogfficialsi in a mingaX shovelng ders, and

sponsibility. Service administration and op-:-ouring:. .emi:ent::::g:.:E:.iE:.:: E:.n :.sEEEEEE..E.E:eration by communities is frequent only for tAn innovative fo.rm. o.f m. ga has devekpe,.rural water systems. innwih neihg scu nli ipis corin

theAir efosfo elatvel igprovi. ft.. hiiT :..... .i: ...i: .. .. .. . .... .:i: .! : . . .E :: .E: .E E .E E.E .. EE i i .. i:..... ... ... E .. :... . . ........ i..

Sustainable capacity development ties among mcbr utf Ith ~nipgipjl1

The success stories in these municipios are nasscation, twashinitiated by he l rstassociated with the emergence of a virtuous -pa u.arty electeM ayoroflpi}alcs ..................... ...... ..cycle that could be critical for the sustainability of the process of local capacity devel- discarded as they are associated with oppo-spment. Responsib ledupadership and com- sltepoasoalgrodpanmunity participation lead to an increase in The quality of local leaders, as well as thedemands for better governments and, conse- speed of reform, will naturally vary overquently, for capacity enhancement. More time. People and styles change. The key tocapable governments tend to attract more sustainability, as illustrated in several mu-qualified and better motivated leaders and nicipios, resides in the degree to which localstaff. Similarly, stronger and more open ad- authorities involve citizens and open theirministrations are likely to promote and ad- administrations to the community. In thevance interaction with citizens. Furthermore, words of the Mayor of Valledupar:the evidence suggests that leadership and 'community ownership of programs andparticipation tend to reinforce each other. ideas is one of the few, and most important,

Th sutiaiiyo. efrsa h oa conditions for continuity of the process of

level is sometimes affected by the dynamics local capacity development'.of the political process. Mayors are electedfor three-year-periods and cannot be ree- , n the 1988.and 1990 municipal electionslected for two consecutive terms. In some the two major political parties obtained ap-cases, local government capacity has suf- proximately 80 and 90 percent of the votefered as a result of changes in municipal respectively, and controlled almost 90 per-administrations. Important initiatives may get cent of all municipios (see Gaitan and

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Moreno (1992)). In the 1992 elections, 13 This was, for example, the case in La Mesa,traditional parties obtained only 65 percent Zipaquira and Puerto Tejada.of the vote with candidates from non- 14 For example in Cucunuba and in ruraltraditional parties gaining control of ap- Valledupar.proximately 300 of the 1,000 municipali-ties.

2 A majority of individuals surveyed in Mani-zales, Valledupar, Ipiales and Zipaquiraindicated that their choices for mayors donot follow party lines and are not necessar-ily consistent, in party terms, with theirchoices at the national level. Only a minor-ity (between one fourth and one third ofthose surveyed) believes that one shouldvote for mayors and president from thesame party.

3 See Cardenas (1994c).

4 See Box 2.1 and Villa (1995d) for the caseof Versalles.

s We estimate that municipios with popula-tion of less than 10,000 have, on average,two professionals in the municipal admini-stration. See Annex 8.

6 See, for example, the contrasting views ofVersalles and Zapatoca (municipios ofsimilar size) in Villa (1995d) and Cardenas(1994d).

7 The Mayor of Jamundi, for example, in-volved several new professionals in theadministration, through his personal con-tacts in the private sector.

8 Jamundi and Piedecuesta present interestingcases in which the mayor was able to in-volve developers in local issues throughcomplex negotiations. See Villa (1995b)and CArdenas (1994a) respectively.

9 See Palencia (1995b) for details.

10 Conflicts between levels of government arediscussed in more detail in Chapter 3.

According to Cardenas (1994b) this was thecase with the 1990-92 municipal admini-stration in San Juan Nepomuceno.

12 See Villa (1995d) for a more complete dis-cussion of the experience of the CPC inVersalles.

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Chapter 3

Capacity building: local initiatives, innovations and tribulations

Capacitv enhancement requires local gov-ernments to undertake reforms in the wa' ............thev conduct their opcrations, to make in- Capacity should ..be understood as ant:vestments in human resources and equip- enabling factor; the tools that make possible

for the; local: governrment to: perform in anment, to adopt new work practices. In our e w. E se tos s:view, innovative and responsible leadership (1 Labor:the quality ofits staffW whichdepends.and community participationi provide the re- on both their sills and the way theyare utilizedquired motivation and the cardinal elements within the bureaucratic structure; (2): Cpital:for those efforts to occur. Nevertheless, in the; equipment,0, tnaterials and buildings..order to materialize, capacity building will requiredjin public sctor activities, withoutinvolve spccific interventiois, reforms and iwhich quality labor could become ineffective;investments. :(3) Technology. the government's internal

organization and management stle, planiiigDo motivated local governments have the andexeculionfunctions...means and the ingenuity needed to develop .We.saythere is a capacity problem:wheniatheir capacity'? The evidence collected municipality 0 is: unable. to achieve: its.through the case studies suggests most of perrmance goals even though:: it has accessthem do. A majority of the local governments to the necessary financial] resources.0 Suchreviewed for this studv enhanced their ca- inability vwill: be. associated' with weaknessespabilities, over this period, by giving atten- algon,eor more dimenions.itioII to areas such as staff skills and profes- Capaity does not ne to reside iin the publiclsionalization (labor), equipment. materials sector to cntribute to the achievement of a highand buildings (capital), organization and the peiforiii g local1 goverment. jndeed, anadministration's planning and execution icive local goverment shotld e .abl t .use functions (technology). However, even the the capacityithat exists. . outsidethepublicmost motivated municipios are facing obsta- :seo the private stor, amonge NG,adlAwithirluthezomnltnu rlarg.:X::: EiiIcles-local and external-in the process of w th commnit at ldeveloping their capabilities, and important

effrt ar sil retiredina ajolt o as a function of their skillls and knowledge asefforts are still required in a majority of well as of the way such skills are utilizedplaces. within the local bureaucratic structure. While

This chapter reviews the most significant in many cases inadequate or insufficientinitiatives undertaken by; municipios in order skills can explain weak capacity, in othersto enhance their capacity, as they were iden- the limiting factor is their ineffective use.tified bv the case studies. In doing so, it con--t. . The case studies show that most local gov-siders some notable innovations that are be- ernments upgraded the qual'ty of their work-ing introduced at the local level, as well as force, increasing the number of professionalsthe obstacles facing local governments in in their staff considerably (see Table 3.1). Atheir capacity strengthening efforts. muni.ci.po like piales for example, in-

creased the number of professionals fromThe human factor: skills and pro- ol he n18 otit n19.Lfessionalization ~~~only three in 1988 to thirty in 1994. Lafessionalization Mesa, which had one professional in the

A key dimension of local government capac- administration before 1988, has now eight.ity is the quality of its staff, which we view

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Table 3.1: Professionals in the municipal administration

Municipio Number of Professionals Employees/Professionals

1988 1994 1988 1994

Manizales 86 148 9.2 5.7

Valledupar 29 118 12.2 4.8

Ipiales 3 30 62.3 7.3

Zipaquira 13 37 19.6 8.7

Piedecuesta 3 15 28.7 12.1

Jamundi 2 8 72.5 29.5

Libano 2 9 61.5 22.8

Puerto Tejada 2 11 37.5 16.1

Pensilvania 1 8 52.0 5.2

San Juan Nepomuceno 1 15 52.0 9.8

La Mesa 1 I1 50.0 8.4

Belalcazar 0 10 6.6

Versalles 1 2 39.0 25.5

Zapatoca 2 4 13.5 13.0

Cucunuba 0 2 8.5

Note: The source ofthis information are the decrees establishing positions (acuerdos civiles) in each municipio for 1988 and 1994.Detailed information for each muncipio is presented in Ballesteros (1995). Employees working under contracts are excluded. Theinformation for Manizales,Valledupar, Ipiales and Pensilvania excludes personnel working for the municipal enterprises.For compa-rabilitv reasons, teachers have been excluded even when they are permanent employees of the municiplo, as in the cases of Jamundi,Piedecuesta, Puerto Tejada and San Juan Nepomuceno. In Ipiales, it was not possible to identify the number of teachers in the munici-pal staff. As a result, the employee/professionals ratio consistent with that of the other municipios is likely to be lower than the oneindicated in the table. For Manizales and Pensilvania, the values for the earlier period correspond to 1989.

Even more remarkable is the change in the and reward svstems. Depending on the case,skill composition of the municipal labor force these changes took place in the municipalIwhich has professionalized very sharply. As administration, the water or public serviceshown in Table 3. 1, the ratio of employees to company, and/or the municipal departmentsprofessionals fell in every case and quite of education and public works.substantially. In lpiales, for example, this Scale and isolation. Small municipios, par-

rati wasredued b a acto of ight Inticularly remote ones, experience particularmunicipios like Valledupar or Pensilvania difficulties in upgrading the quality of theirthe ratio of employees to professionals is workforcc. In the first place, scale imposes asimila toteoefudinacutylk natural or structural limit on the number ofChile generally cited as an example of mu- nicipal strengthening in the region.' rfsinl okngfrtemmla d

ministration. A maj'ority of Colombian mu-This was done through new hirings and nicipios simply cannot afford the expenses oftraining and, particularly among the larger a cadre of adequately remunerated profes-municipios, by adapting personnel policies sionals in the different areas of governmnent

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responsibilitv. Secondly, the cost of hiring charge of specific construction proj-even a few well qualified professionals might ects-a road, the extension of the waterbe too high for many small municipios that svstem-that report to the mayor.would have to attract them from other- . Some of the intermediate size municipiossometimes distant-places. have been able to attract out-of-town

To a certain degree, a majoritv of the mu- professionals to work for the local ad-this category:............ ministration on a long term basis (one to

nicipos in our std fall in two vears). La Mesa, for example, hasnine out of the sixtccn havc populations of t x'ealess than 35,000. In manv cases thev have taken advantage of its proximit' to Bo-developed alternative strategies that allow gota and hlired well-qualified profession-tevelopeoatte scalegproblem, altou als to work as advisors to the mayor in

nthe to erali drawbacks areas such as housing, internal control,not withou certaiidrawbacksfiscal affairs, contracts and water.5

* In the verv small municiplos (for exam- Similarly, Pensilvania has benefited fromple, with populations of lcss than10,000) the mayor becomcs an hombre a strong and committcd community resid-

orquesa (a one-man-band) .being in ing in other areas of the country. Manyrquesta (a one-nn-band) eing inoung Pensilvanians return to work for

charge of miost activities that require a the local administration after a few yearscertain degrec of qualification. In this of on-the-job training in companiescase, leadership becomes the centralvariable imposing ccrtaini fragility for the

t .t' of >.-,,manv of them eventually leave town, thesustamnabilltv of the capacity develop- -.s i arrangement has provided a steady flowment process. of human resources since the beginning

* Sharing professionals with other mu- of decentralization.nicilpos is another strategy followed bosome. All those cascs involvcd some Employment practices. Developing ade-formal ties betwccn ncighboring mu- quate personnel policies-recruitment, pro-nicipios, such as those cxistiing among motion rules, staff motivation, pay scales-members of a municipal association and formal training programs constitutes the(more on this below). For example, the main challenge for larger municipios at-municipio of Cucunuba (with population tempting to improve the quality of their staff.of approximately 7,000) shares with the This challenge can be rather complex as itother members of its municipal associa- involves politically charged decisions such astion the salary of a lawyer that functions the level and composition of public employ-as a multi-purpose advisor. Similarly ment. This is particularly clear in the educa-ASOBANDO (the association centcred tion sector. Several municipios face a capac-around Ipiales) provides the support of ity problem because the Estatuto Docenteits professionals for project preparation limits their flexibility to change employmentand other technical tasks to the smaller practices given its rules on selection andmunicipios membcrs. management of teachers.

* The temporary usc of professionals is an Personnel policies were found to be an im-alternative used by Zapatoca. (a mu- portant issue among the larger municipios innicipio with a population of approxi- our sample, all of which have started to im-mately 10,000) that had to eliminate pro- plement their civil service regimes.6 To dif-fessional requirements for heads of de- ferent degrees, municipios like Manizales,partments due to its inability' to attract Valledupar or Ipiales have developed a so-full-time candidatcs. In rcsponse, Zapa-toca introduced the figure of projectmanagers (gerentes de pro yecto) in

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gram. Today, most of the departmentBox 3.2: The ICAM of Manizales heads and managers in the service com-The -Municipal Training Institute of panies and decentralized offices haveManizales (ICAM) started operating in 1994.. . ~~~~~~~~~~been formned in what they proudly callwith support from the French Cooperation r v

:Agency. The ICAM was conceive as part of 'the municipal school'. The mayor him-a broad strategy to solve technical and self is an example of this model: he par-behavioral constrains: of staff. ICA has ticipated in the admninistrative reorgani-practically no permanent personnel. zation during the 1988-90 period, headed

ICAM organizes training courses, workshops the team that liquidated the departmentaland semnnars covering topics such as public water company,i and was in charge of

.adninistration, strategic: planning, data the new company that was formed. Also,systems, computer programming, legal issues Ipiales pays up to half the cost of train-and organizational management. ICAM's ing courses municipal employees take intraining activities have benefited over .2,000 local and regional higher education insti-people: It provides. financial assistance to 200 tutionspublic .servants pursuing high school,iundergraduate and graduate degrees, andprovid'ed .corputer training for another 1 Capital: the physical factorstaff. Its receives one percent of the municipal Most public sector activities require the use.bdget. ' of capital in addition to labor. High quality

labor becomes ineffective when, for example,well qualified and motivated professional working in run-down buildings or withoutstaff. This, however, was not done overnight: access to necessary equipment. The evidence* Manizales has a long tradition of pro- in this area is very clear. Municipios do not

fessionalization, which has been rein- find serious difficulties in establishing a rea-forced over several years by conscious sonable level of capacity in terms of equip-efforts to increase the ratio of profes- ment and buildings.sionals to unskilled workers through per-sonnel attrition. Those efforts are com- Compared to the other two dimensions,plemented by its staff development and capital does not involve particular difficul-training policies (see Box 3.2). ties. This could be related to two factors.

- Valledupar has, since the popular elec- First, once a municipio has the financial re-tion of mayors, professionalized its ad- sources, access to equipment and materials isministration. The cabinet is composed of relatively easy as there exist well developedmostly young professionals (many with markets. Second, strengthening this dimen-graduate studies) with experience in the sion of capaclty is less controversial as itpublic and private sectors. The public does not involve sensitive issues of personnelworks department that traditionally ex- and organizational practices.perienced redundant unskilled labor, was A somewhat controversial aspect relates toprofoundly reformed. Workers received policies followed regarding the equipment forofficial support to form a cooperative construction and maintenance projects. Sev-enterprise (with financial support from eral municipios have established fondos ro-UNDP), now maintaining rural roads in tatorios de maquinarias: they own thea very effective way.7 As a result the de- equipment in partnership with a municipalpartment has a small cadre of profes- association (as in the case of Cucunuba, Lasionals, and a better performance record. Mesa and Ipiales) or by itself (as in Zapa-

* Ipiales established, since 1988, a rotation toca). In most cases, the municipio facilitatessystem among municipal employees that the equipment for community use, throughhas worked as a de-facto training pro- different arrangements. In Zapatoca the

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equipment is rented while in La Mesa it is administrative reforms: changing the struc-loaned based on an agreement that the bor- ture of the municipal organization, creatingrowers will contribute specific inputs to the new departments, establishing the corre-construction projects. In Ipiales, a yearly sponding division of responsibilities andschedule for use is agreed among the mem- channels of communication. To be fully ef-bers of the municipal association that owns fective, reforms must be done in a wav thatthe equipment. contributes to staff morale. Several mu-

This practice-which does not exist in large nicipios have shown initiative and drive inThis pacticewhich oes no existimplementing these reforms. Others., how-municipalities like Manizales and Valledupar appearnt ing peform ac prob-that contract out to the private sector-is ever, appear to be facing performance prob-typically' justified on the grounds that it is lems as a result of their failure in this area.less expensive than hiring private contrac- Organizational reform did not appear to be ators. The evidence on the cost-effectiveness matter of concern for the smaller municipios,of these arrangements, however, is inconclu- which require very simple organizationssive. It is likely that fondos de maquinarias based, to a large extent, on the mayor. Theare a sensible idea for small and remote mu- case studies suggest the issue gains impor-nicipios, but not necessarily for all. tance in municipios of approximately 40,000

inhabitants and above.

Technologies: improving the The larger municipios in our sample weremanagement process able to develop sophisticated and effective

Good people working for a badly organized organizations:municipal administration, or without the nec- * They have reorganized the structure ofessary management tools, will not go too far their administration in a way that allowsin terms of effectiveness. This principle is for decisions to be made in a fast and ef-recognized-although not always in an ex- fective manner. Valledupar, for example,plicit manner-by a majoritv of the local introduced a small technical unit in thegovernments we reviewed. The case studies mayor's office to give due process toshow efforts to improve the functioning of problems and needs identified by lowermunicipal organizations, the use of planning levels as well as by citizens. Togetherand the execution of municipal projects. with a planning unit, it has allowed topThose efforts are found throughout the size management to deal effectively with arange, and seem to be commensurate with the larger number of problems and issues.municipio 's size. * They have developed some modern and

sophisticated organizations such as theSupport from agents external to the mu-Emrssluic d Mmzaenicipio-for example, from the German Co- Empresas P01icas de Manizales

(created in 1962 before the beginning ofoperation (GTZ), the PDI, .NDP, or the the decentralization process),9 character-Universidad Pedag6gica-in this area has ized by the stability of its managementbeen for specific projects and following local and independence from political influ-requests. For example, the case studies iden- ence. Highly qualified personnel, goodtified several instances in which an external magency provided technical assistance in the mpreparation of development plans in response with an administrative organization thatpreparat ofnic developmentqplansuin response has adapted through time explain its ex-to a municipal request. cellent performance record.

Reforming the municipal organization. * They have been able to implement ad-New responsibilities make it imperative for ministrative and motivational reforms inmany municipios to undertake some type of the municipal administration with great

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success. For example, in Ipiales a new weak and responsibility for the water systemcorporate culture has developed in the had to be transferred to the city of Bucara-local government, that follows a very manga. This pattern is in part the result of aflexible and decentralized work style in highly centralized organization in which mostan environment of high staff motivation. decisions must still go through the mayor

A second group of rnuntczpios'0 -large although the complexity of problems is suchenough to face problems of organizational that no single person is capable of processingcomplexity, but smaller than the ones dis- the solutions. Similar trends are found incomplexity, but smallerhr than thei onesthisgrou. Idisncussed above-experienced difficulties in other munielpios in this group. In manyimplementing reforms to adapt their munici- cascs, the sustainability of reform effortspal organization. Most of them have made could be jeopardized due to isufficientlyprogress in establishing their water compa- developed muncipal organzations.nies or creating their secretariats of educa- Planning as a tool. The sharp increase intion. However, they have not been able to resources being managed by local govern-integrate the different parts of the municipal ments and the variety of sectors in whichadministration in an harmonic fashion. As a they now have responsibilities, imply theresult, government effectiveness depends on need to upgrade their capacity to plan-thatthe specific arrangements in the sector and is, to establish goals and the means tolarge differences emerge within the local achieve them. In addition to satisfying tech-government. nical criteria, planning under the system of

Pedec afor example, has a well organ- decentralized governance must also reflectPiedecuesta, . ' . e the needs, preferences and priorities of re-ized and functioning secretariat of education cetl enrnhsdctzn.Tu,lclgvthat helps explaining its remarkable record in centlv enfranchised citizens. Thus, local gov-

the sctor.On th othr han, thedeparment emments must combine their efforts to de-the sector. On the other hand, the department velop conventional planning skills with new

in charge of the road sector is notoriously methods to elucidate community demands.

Box 3.3: The administration in Ipiales Few municipios have fully developed theseThe municipal administrat.on in .pials.s.an capabilities. But, when the evidence collected

Thc tnunicipal administratioxi in Ipiales is an in the case studies is reviewed critically andopen and flexible organization. Since 1988,and before the enactment of the civil service with due consideration to differences in size,law, jpiales established the practice of rotat- a more encouraging picture emerges. Whileing staff among deprtments, as part of: a small municipios do not have full-fledgedbroad strategy aimed: at-transforning the gov- development plans, most have a listing ofetminent into an entity driven by: a spirit of investment priorities, the source of funds forefficiency and service. Ipiales has highly mo- each of them and an execution plan-tivated and well prepared personnel. : probably the right tool given their scale.There are no administrative walls. Interaction Among the larger municipalities, most havebetween staff is direct and work is carried out both municipal development and sectoralunder a team structure. Senior officials -par- plans which, in effect, have become operat-ticipate at all levels: In the Department of ing tools in the day to day operations.'2Public Works professionals answer their ownphones and handle their mail. People work An interesting aspect of many of thesehard and long hours without over-time pay- 'plans" is their impact on generating organ-ments. A simple example of work habits pre- izational and community spirit. Several mu-vailing in the administration is the absence of nicipios have systematically involved the-the."coffee-clerk".. This working stle has community in the preparation of plans. Forincreased staff moral and strengthened ties. .. ~~~~~~~~exaimple, La Mesa for ItS education sector"!th the communumty. with the communi' . plan, and Pensilvania by regularly consulting

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Bol::A: y-S E t:; 3.4 S:V a. . ..aie Ela a ie ua s exists. External help, however, cannot pro-:;.Bo.3.4....s.v.....m .. ae.. vide the motivation to initiate such exercises

s .n. many . other. places, unicipal develop- nor the commitment to internalize them.:M01ent Mplans w prepared in: Valledupar byWexternalagents (universities,consultants,andr Project execution. It is at the level of im-itionaitentities) lwit.h little or no participa- plementing investment projects that manyion oflocal staff. The result wasJlow. owner-K mur.cipios face capacity limitations. Theship and-litt CJimpact. ThisWchanged when, in: evidence shows a mixed record. While in-1993, thdi: teadministration implemented an terviews with local residents and key infor-instnnent .nown.as .St.ategic Situational mants indicate the existence of problemsPlanning SS t hl evlpadxeu such as slow execution, the case studies en-the; mulipal develpmentplan.:......... .. i- : Eiiit t:t i0 iX-tEi:X: iEcountered manv examples of effective im-... er.SSP. a.. action: plan,:: .which listsstr plementation. Capacity in thi ems to.::. ....... I I i::.E . 0:':E-uE :u::nE peetto.Cpct hs area seestgicactwvites anid identifies the ette esponsible for theirimplementation, is; pre- be closely associated with various other di-p.red collectively.EBased on it, the .adii.i. mensions such as strong leadership, com-

.. .. .. .. .. . .. . .... . . : stration -:develo:ped: the 1993-94 t:goverrinment munity involvement in projects, clear priori-

...pln ..whih .. identified 18 specific problems, ties, and an effective municipal organization.r.esponsibilities,: human: nd financial re-: ........ a.. p.i. act..o. : addii o, s . A pattern appears among those cases of suc-0 ->rIcsa. d: Offleic actlons.::ift Addition,0 9SSP. ..-helps- to e.ta.ish a.sy.tem.to monitor prog- cessful execution, linked to the criteria of

.ress .on. arioustasks or projects. Eveiy month selectivity and specialization. Selectivity:themayor r Mts lwithM the .t:amsresponsible implies that municipios improve project exc-

I.fi implexnentiif; dlerent components :of the cution by concentrating on relatively fewlaction plan toevaiate progBress on the van- priorities. Typically, the mayors in the re-

.o ..s .activitiesVaccording4to: previously estab- viewed cases tend to concentrate their re-ls.he incats :. : ... sources and political capital on a limitedTQO guarantee the operationalLprocess of the number of projects-a particular road,MSSPprocess, a Central Plat ing Unit(CPU) Q bringing water to town or cleaning the river.

a' :a.Techno-Politicali Unit U(TPU) 4wered es-t:ablisliedtTh CPU is :responsibletfor guara- Specialization implies that the local govern-

inthe pro Iessni oIDeTproblems identi-t ment does not attempt to do everything byfled iate aoonAplanO and ii nemtAt the: itself. Successful implementation was alwaysro. ess in all: departdme nts.The TPUbprovides associated with the involvement of someone

t ...nical4support and filters ethe political Ado" outside the local administration: the com-... ... ........ ...... .......ci10ons and problems that reach the mayor. munity (as described in Chapter 2), an NGO

(for example FUNDAGUA in Valledupar orcitizens on sectoral priorities (see Box 2.4). Fe y Alegria in Manizales), the private sectorIn some cases, plans-documents-have the or a neighboring municipio.benefit of acting as 'certificates of continu-ity', particularly through changes in admini- The challenge of putting it all to-stration, as well as a technocratic device. getherIn many cases, municipios rely on some type The evidence presented in this chapter illus-

of support-from consultants, universities trates the extent to which local governmentsand technical groups, or in a few cases from he

) ~~~~~~have strengthened their capacity, and theprivate firmns-to develop these plans. Al- .

significant ingenuity and degree of inovationthough the cases reviewed show their share that exists among municipios. Table 3.2of plans that fall wvithin the categorv of 'thickand useless volumes', it appears that in most capity some of the notable examples of

D . ~~~~~capacity development founid in the caseopportunities local governments are receiving studies.adequate support, when effective demand

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Table 3.2: A sample of local capacity enhancing initiatives

Labor I Capital I Technology

Staff quality, whichi depends on both The equipment, materials and The govemmenfs internal organi-skills and the way they are utilized buildings required in public zation and management style,within the bureaucratic structure. sector activities. planniing and execution functions.. Municipal training institute . Privatization of all road * Strategic situational plan-

(ICAM) in Manizales. maintenance in Manizales ning in Valledupar.* Gerentex de pro.vectos in Za- and rural road maintenance * Methodology of investnment

patoca and long term advisors in Valledupar increased planning and monitoring byin La Mesa. available capital to the sec- projects in San Juan

. Advisor shared by members tor. Nepomuceno.of municipal association in . Introduction of computers a Administrative reforms inCucunuba. and systems in the water and Pensilvania (creation of

* A'unicipio pays 50% of sanitation enterprise in San public enterprise, UMATA,training cost in qualified in- Juan Nepomuceno. etc.).stitutions for staff in Ipiales. a In Pensilvania, the public * Administrative reform and

. Bilingual teacher training in hospital, the water company development plan for edu-Puerto Narifio. and the UMATA have com- cation in Piedecuesta.

• Professionalization of man- puterized their systems. * Systematic use of sectoralagcment in all municipal de- . Private developers in charge plans in La Mesa.partments in Pensilvania, of urban road construction * Special secretariat in chargewith repatriates. in Piedecuesta. of mega-projects in Mani-

. Rotation system as training * Sharing equipment between zales.program for municipal staff members of municipal as- . Decentralization of munici-in Ipiales. sociation in Ipiales, La Mesa pal administration in Ipiales

. Introduction of a system of and Cucunuba. gives spending authority tocompetitive persoinel hiring . Fondos rotatorios de department heads.in Pucrto Tejada. maquinarias in Zapatoca.

The process of building a modem and effec- complex and confusing."3 Frequent changestive local government is, however, immensely and additions imply further complications.14

complex. Mfunicipios not only must face the In many cases well intentioned local authori-

political and technical challenges involved in ties have unknowingly broken rules due tothe process of reformling their administra- lack of information. This has not contnrbutedtions, upgrading the quality of their staff and

-. ~~~~~~~~~~~to generate a sense of trust between the dif-adopting new svstems and methods. They

- . . . ferent actors involved in the process of de-must also learn how to operate in an institu- centralization. Most of the local authoritiestional and legal environment that continues to interviewed for this study complain about

change at a fast pace. what they perceive to be undue persecution

A stifling environment. A successful effort by the center. On the other hand, nationalto build local capacity requires municipios to level agencies-particularly those with con-have the autonomy and security needed to trol responsibilities-are naturally concernedmake long term commitments. In that sense, about the lack of compliance with legalclear and stable rules of the game are a key norms. Insufficient channels of communica-contributing factor. In spite of repeated ef- tion between levels of government make itforts by the different levels of government, difficult to reverse this environment, which ismost municipios still find the legal and clearly not conducive to development of ef-regulatory framework which governs them fective municipios.

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A factor further hampering the ability of This state of affairs is probably the result ofsome local governments to consolidate their a combination of factors. First, the newnesscapacity building efforts is the barrage of of these arrangements and the ambiguity overnational programs for institutional develop- the implementation of the division of laborment that operate in an uncoordinated man- between departments and municipios is aner. The paradoxical result is that these pro- contributing factor. Second, the institutionalgrams-meant to support local govern- weaknesses of many departments does notments-end up forcing on them an inefficient position them adequately to play the role ofuse of their time and human resources, over- partners and enablers of the efforts con-whelming-rather than strengthening-their ducted at the local level.capacity. Coordination issues. The process of local

Municipios and departments. The decen- capacity development could be suffering intralization framework being implemented in many circumstances due to insufficient inter-Colombia requires, in different ways, that municipal coordination. Such issues weremunicipios work together with their depart- identified in two main areas:ments. In some sectors, such as education, * The difficulty of learning about the les-local and regional governments share re- sons and experience of others. Selfsponsibilities. Departments have, according starter municipios must necessarily beto law, a coordinating, monitoring and as- innovators and, to a certain extent, risksisting role to play with respect to mu- takcrs. However, dissemination of theirnicipios.15 experience with capacity enhancing ac-

However, the case studies indicate there is tivities, should make it easier for othersto follow. Infornation about successfulcurrently a significant gap between this pro-

posed role and the observed realitv. Among interventions should also make othergovernments less anxious about the so-

the sixteen municipios covered in this study cial and t oss of refs.only two-those in Valle del Cauca-showed cial and political costs of refonms.a departmental presence conducive to a svs- Spontaneous dissemination, which mighttem of effective governments. That is, one in be taking place, is taking too long andwhich departmental institutions-such as does not reach everywhere.7 There isACUAVALLE or the secretariat of educa- currently no institution in Colombiation-coordinate and assist .iptos in a (public or civic) that is assuming this

non-intrusive and effect manner.adissemination role. Thus, when dealingwith capacity development, most of the

Among the rest, a majority of mzfnicipios municipios covered in the study were inhave either confrontational or distant rela- the awkward position of "reinventing thetionships with the departmental government. wheel".In a few cases, close political links with the . Scattered evidence indicates that one ofgovernor's office was helpful in obtaining the institutional development schemesfinancial resources. However, little was ob- most frequently used at the local level isserved in terms of a long-term commitment to the association of two or more munici-strengthen local institutions or working to- palities with a view to take advantage ofgether in important areas such as planning. economies of scale in management andTo a certain extent, the larger mulnicipios in administration and/or to facilitate hori-our sample may be institutionally stronger zontal transfer of management technolo-than the department and less in need of assis- gies. Often these associations stimulatetance.'6 expansion and innovation in local serv-

ices. Five of the municipios in our sam-ple are members of a municipal associa-

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tion. The legal framework is permissive likely to move in this direction than smallerand does not constitute a significant ob- municipios. The evidence reviewed suggestsstacle to either the creation of new asso- there is ample room to advance local capac-ciations or their involvement in local ca- ity by involving the private sector.pacity development efforts. There is not,however, sufficient awareness among Local capacity developmentmunicipios of the advantages of this typeof associational arrangements. Further- As our review sindcates, capacity buildsigmore, without financial and technical involves efforts in several dimensions, withassistance, the process of constituting a the total being larger than the sum of parts.new association mav be too costlv for Putting it all together-the ultimate challenge

most small municiplos. for a reformist local government-is notmost small muniCIplOX. easy. The experience of these municipios

Involving the private sector. An important strongly indicates that leadership and com-aspect of capacity development is for local munity participation are the fundamentalgovernments to learn how to work with new factors that bring these efforts together into apartners that can significantly expand their cotisistcnt \N\olc. It also iidicatcs ilhcrc arccapacity to perform their responsibilities and no simple recipes that all municipios canprovide services to their population. One follow. The right model for institutional de-surprising finding coming from the case velopment must follow local perceptions ofstudies is the limited rolc the private sector needs and preferences regarding the means toseems to be playing in the process of satisfy them. There is no feasible substitutestrengthening local governments. And the to an approach in which local governments,type of synergetic association conventionally with the active participation of their com-associated with the case of Cali does not munities. take the initiative and responsibilityseem to be easily replicated in other parts of for the actions conducive to their institutionalthe country. development.

Practically all municipios have private con-tractors execute part of their construction See Annex 3 for a more complete presenta-projects, particularly in roads and water. Be- lion of the conceptual framework used toyond that, the evidence on collaboration be- analyze capacity in the case studies.tween the public and private sectors at the 2 See Campbell and others (1991). It shouldlocal level is scarce." Furthermore, smaller be noted that the professionalization inmunicipios find it difficult to involve private Chile took place over a period of fifteencontractors for municipal projects unless years, while the changes we observe in thesethey are of a certain magnitude as, in most municipios took place in only six vears.cases, those contractors operate out of larger 3 Among the sixteen cases reviewed for thiscities two to three hours away. Jamundi and study, Puerto Narifio exemplifies the ex-Piedecuesta, both part of expanding metro- treme difficulties of an isolated "micro-politan areas, have established some type of mnunicipio". See Palencia (1995d).cooperative relationship with developers that 4 The cases of Zapatoca and Belalcazar arehas payoffs to the municipio but is not con- good examples. The very different leader-ducive to establishing sustainable capacity ship style of their mayors had a fundamen-within the local administration tal impact on local government capacity.

Privatization of services does not appear See Cardenas (I 994d) and Palenciaprominently in the agenda of most local gov-ernments. Valledupar and Manizales show Although it is a larger municipality, Piede-some interesting experiences and are more cuesta has similarly benefited from its

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proximity to Bucaramanga as many of the 13 It is not urusual for different nationalprofessionals working in the local admini- agencies to have conflicting interpretationsstration live there. of the rules to which local governments

6 . must conform. Considering the large num-It IS too early to assess the full Impact the bro ue fetn uniis h a.. . . .. ~~~~~~ber of rules affecting municipios, the na-

carrera administrativa might have on mu-nicpa cpit. Neetees.oeei tional government issued, on November ofnicipal capacity. Nevertheless, some evi- 1994 Decree 2626 which compiles the

dence is slowly emerging. Hiring standards '.are unlikely to experience significant constitutional and legal rules affecting the

changes: the carrera adininistrativa does organization and functioning of munici-not appear to be neither a necessary nor palities. The decree has 686 articles and 61

sufficient condition to hire qualified staff. pages.Its impact may be higher in terms of lower- 14 For example, Law 136 (which regulatesing staff turnover. However, as a large municipal operations) was approved onnumber of professionals will not be covered June 1994 and modified by Law 177 on De-by the carrera administrativa the final ef- cember of the same year.feet on capacity is unclear. Law 60 established that departments must

See Cardenas (1 994c) and paragraph 1.18. provide the technical, administrative and fi-

Decree 77 of 1987 mandated that the de- nancial assistance to inunicipios requiredpartmental water companies (EMNOS) be for the adequate provision of services.

transferred to local authorities. Given the 1 6 For example, officials in the Department oflack of interest on the part of the Depart- Narifno indicated that, given their relativement of Narifio, Ipiales took the initiative to strength, Ipiales could be offering them as-liquidate EMPONARINO. The Mayor of sistance rather than the opposite.Ipiales at the time of our visit, had been in In preparation for this study, a workshopcharge of the liquidation. He manifested '' orgarationd the stu f a sixtehothis was a very important learning experi- was organized and the mayors of the sixteenence on administrative, legal and political municipios were invited. The discussionsmatters (dealing with the department, the and reactions to the exchange of informa-union, bureaucrats). tion indicated both the inadequate flow of

information on best practices and its poten-9 Interesting cases of inter-municipal coop- tial impact on local capacity.

eration were identified in this area. The 18 Ipiales presents a special case. Its ap-Empresas Publicas de Alanizales received pialesumma in the Tts Mu-technical support from the municipal com- proach-summarized in the slogan Mu-

afromlMedellin. ISERV, the municipal nicipio-Empresa AFno 2000-views thepany in Mede of te municipal municipal government as a self-sufficientcompany in charge of waste management, etrrs htcmad h eorestreet lighting and other services in Ipiales, enterprise that commands the resourcesreceived support from their counterparts in needed to provide essential services to itsMedellin and Cali. citizens. In the sense that they have con-

sciously tried to develop in-house capacity10 This group includes Zipaquira, Piedecuesta, to avoid depending on private contractors.

Jamundi, El Libano and Puerto Tejada. A sense of regional isolation might be con-

See, for example, Villa (1995b) for an ex- tributing to this approach.ample of this view in reference to Jamundi.

12 In some cases, there appears to be a lack ofintegration between the sectoral plans andthe municipal plan. This is particularly truewhen capacity varies significantly betweensectors. In those cases the municipal planmight be unbalanced.

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Chapter 4

Addressing the challenge of local capacity development

The chief findings of this study-the impor- is effective demand by local administra-tance of leadership, of community participa- tions and communities. The interventionstion and of political reform, as well as the needed to increase demand for capacitytremendous potential for innovation at the development must go beyond technicallocal level-lead us to propose an approach assistance and work, indirectly, by pro-to capacity strengthening of local govern- moting innovative and responsible lead-ments that implies the involvement of a vari- ership and community participation.ety of actors-public and civic, central, re- b) Technical assistance should follow localgional and local-and tools that go beyond demand, be tailored to local needs, andtraditional technical assistance programs. be provided in a decentralized manner.

But while signs of reform and innovation are The challenge is to create the environ-beginning to appear in many mzinicipios, this ment conducive to the emergence andbegining t appar inmany unicpios.thisconsolidiation of a system in which mul-process may be impeded by doubt, uncer-tainty, and even strained relations among tiple agents are positioned to offer sup-levels of government. A legacy of antago- porthto local governments.nism may be affecting the spread of self- c) The diffusion of institutional change

starting action by some municipios. After throughout the country will depend onstarting acinb oemncpo.Atrthe speed and extent to which informna-years of tight control, local governments arenow flooded with sudden reforms. These tion-on best practices and availablecarry mixed messages of freedom floating in solutions for local governments-flowsan atmosphere of doubt, new obligations. and between municipios. Such disseminationrestrictive controls. To some extent, the in- can be considered a public good that isnovations and initiatives taken by local gov- currently being under-supplied.ernnents may be seen as a reaction to exces- Promoting leadership and communitysive constraints of the past. And, some of the participation. The study found again andill-feeling will pass as institutions become again that local leadership and communitymore familiar with their new roles. participation emerged as key parts to the ex-

It would be wasteful not to capitalize on the planation of local capacity. We conclude thatnew, innovative energies depicted in this the political and social system is now open-study. We think that with dedicated efforts to ing opportunities for competition in the se-

lection of local leadership and for civil soci-improve intergovernmental relations, the newet'inovmtinlclpbclf.Anwcivic spirit is sufficientlv robust to support a ety's involvement in local public life. A new

strateg willhv orlmr evlonew approach to institutional strengthening. strates w ing o ly ore y onBeyond technical assistance means tapping Incentives operating on local 'civic and po-into the vibrancy of local initiatives produced itical markets'.by political and social reforms. Efforts should be made to foster and develop

these fundamental qualities of civic life.The proposed strategy Stimulating development of local leadershipOur proposal is based on three basic prem- and fostering civic involvement would haveOusrii proposalmisbasedon th ree basic: pre- the double effect of increasing demand for

ises arising from the studv': capacity development and increasing capac-a) Sustainable development of capacity at

the local level is possible onlv when there concl me and oc partcants The- 29 -I members and local part'cipants. The

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promotion of leadership and community par- powerful tool to improve accountabilityticipation, should thus become an integral and promote more responsible leader-part of any effort directed toward local gov- ship. This will require a systematic effortermnent strengthening. This view is in con- to monitor events at the local level, thatsonance with the approach proposed by the can involve both the national (probablyGovernment of Colombia in its new devel- through DNP) and departmental levels.opment plan, El Salto Social, that calls for The Sistema Nacional de Evaluaci6n depublic policies and actions conducive to more Resultados could offer a reference toparticipation and supportive of the develop- these efforts.ment of participatory organizations.1 * The promotion of community participa-

This strategic component should incorporate tion must be an important part of thisprograms along the following lines: strategic component. Social marketing* Public affairs campaigns to educate and interventions (for example, calling for

inform the public about the responsibili- more community involvement throughties of local governments-mayors and media programs as was done in mu-council members-and the rights of citi- nicipios like Valledupar, and throughzens should contribute to generate more newsletters) must be combined with theawareness, promote accountabilitv of lo- empowerment of community basedcal officials and motivate citizen in- groups. The experience of PNR hasvolvement. The national governiment2 can proved to be verv positive and their ef-

initiate some of these campaigns, but in forts should be continued. The cofinanc-order to be effective and sustainable they ing funds can also play a role by openigwill require the involvement and initia- their operations to, and promoting pro-tive from the departments and the NGO posals, from community groups. Thetc rommithe dProfessional and business many innovative forms of participation

community. ~~~~~~~~already seen suggest that grants to comn-associations can also be invited to sup- aunity grup t ter inati modes

port these campaigns. ~~munmty groups to foster innovative modesCpor-t these campaigns. e* Innovative and rcsponsible leadership of participation in local issues should be

should be rewarded. Potential ideas explored.might include prizes, national service * The latter is an area, however, in which

awards, scholarships and fellowships, local govemments and NGOs have aintemships and national notoriety for in- comparative advantage over nationalnovations (for example in community programs. Local leaders, independently

or in cooperation with NGOs, can have aand private sector participation) in good significant impact in mobilizing theirgovemance, and other key categories. communities to participate voicing de-The national government, through its mands, making choices and hemg in-sectoral ministries, can establish the mand ing ctsg is,practice of publiclv recognizing local volved in projects. In the last analysis,leaders that excel in their perfornance in the sustainability of reform efforts willareas such as education or health pro- depend on whether they generate a realmotion. The Federacion Colombiana de sense of ownership among citizens.Municipios and the Confederation of Decentralized and demand-driven support.NGOs should play an active role in co- The case studies indicate that local capacityordinating these prizes and recognition strengthening is seldom the result of supply-programs. driven and centrallv provided technical assis-

* The collection and publication of infor- tance. This leads us to suggest that, in ordermation on the programs and performance to be effective, technical assistance should:of local govemments can be another (i) tend to follow local demand rather than

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central mandates; (ii) be tailored to local zontal relationships-that is links amongneeds recognizing the heterogeneity of Co- municipalities and between local govern-lombian municipios; and (iii) bc provided in ments and private entities-should play aa decentralized manner. more central role in local capacity strength-

The challenge, in our view, is to creatc an eningefforts.environment conducive to the emergence and The goal should be the active involvement ofconsolidation of a system in which multiple the mans institutions with expertise in ca-agents-public, private and non-profit; local, pacitv strengthening-universities, NGOs,regional and national-are positioned to offer professional associations, private firms. de-the type of technical support local govern- partments and municipalities-to providements ma: require. A strategs for local ca- technical support to local governments. Apacity development should not rcly exclu- nctwork of those institutions-organized atsively on vertical relationships (nation. de- the regional and national level-would pro-partment. municipality). In our view. hori- vide a forum for the exchange of ideas and

experiences. It would also promote high pro-Box 4.1: Working with NGOs4 fessional standards-through formal andColombia has a very large and active network of informal means-in what must be an essen-Non-governmental organizations (NGOs) rang- tiallv competitive setting.ing from sophisticated national organizations tolocal, communitv-based ones. Thcir contribution The evidence indicates that the number ofto the development of local capacity involves the organizations involved in the provision ofdirect provision of services to communitics technical support to municipios is growing(reducing demand on public services) and work rapidly. The legal and regulatory frameworkorganizing communities (helping local govern- allows local administrations to contract pri-ments to establish communication channels and vate sector firms. universities, non-profit or-identifying community preferences). ganizations and professional associations forSeveral NGOs are contributing more directly to management and support tasks.strengtheninpg the capacity of local administra-tions through their assistance in the preparation The national and departmental governmentsof municipal development plans and staff trair- could contribute to this process by:ing. Experience indicates that those NGOs that * Helping initiate and coordinate, at leastare involved in the promotion of comnmunity in its formation period, the institutionalparticipation also participate in the formulation development netw ork.of municipal development plans and the provi- * Offering financial incentives for new,sion of training to local government officials. and potentiallv effective, suppliers ofThe national constitution provides the legal technical support to get involved in theframework conducive to a formal participation i d n xby NGOs in local programs. The legislation . . .implementing the relevant articles of the Consti- amples include: (i) a sister cities programtution was enacted in late 1994 through Decree in which successful mw nickpbos receive2626, removing the last legal barriers to this grants to support weaker ones; (ii) gov-important type of partnerslhip. However, ernment aid to regional schools for mu-achieving the full potential in this area will take nicipal management that adhere to na-time as local governments, communities and tional professional standards and includeNGOs become familiar with the new framework. municipal representation in their boards,The establishment of a national registry of (iii) fellowships to formner mavors andNGOs and several other initiatives included in communitv leaders recognized for theirthe national government's development plan performance and innovation that wouldshould contribute to consolidating the role allow them to advise other municipios.NGOs play at the local level.

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Disseminating information. Access to in- may present serious obstacles to further tak-formation about innovations and best prac- ing of initiatives by local governments.tices taking place in sister institutions across A dissemination effort to improve local un-the country and available sources of support derstanding of legal and regulatory reformsis an extremely powerful tool for a local gov- in the country-such as the laws dealing withemnment motivated to strengthen its capacity. procurement and planning, rules of cofinanc-Spontaneous dissemination, which might be ing institutions, to name a few-is a verytaking place, is taking too long and does not important part of laying the foundation forreach everywhere. The experience of the local institutional strengthening. A nationalmunicipios reviewed for this study testifies in education campaign followed by the intro-

that regard. The lack of an institution- duction of a system of legal information topublic, private or both-that performs this which local governments have readily accessdissemination role is making the task of en- should be considered by the national gov-hancing capacity an even more difficult one. e pernment, probably in coordination with theIn our view, the dissemination of experiences Federaci6n Colombiana de Municipios.and information on capacity development These efforts would respond to the uncer-will require an active role by one or more tainties faced by local governments and con-national institutions, although not necessarily tribute to create a more favorable setting forgovernmental. A reformed and more effective the implementation of the proposed strategy.Federaci6n Colombiana de Municipioscould play a leading role in this area. How- Implementing the strategyever, even if it takes on that responsibility, itshould coordinate with and involve other in The proposed approach falls in line with re-stitutions that in their day-to-day operations forms of the state being implemented in Co-interact with local governments, such as the lombia and other countries in the region: theDNP, the Ministries of Education, Health central government's functions in institu-Government and Development, DRI, Finde- tional strengthenng shrink back, and those ofter, FIS, departments, regional development subnational governments and the civil andinstitutes such as IDEA, ESAP, as well as a private sectors expand, more in proportion todiverse group of NGOs. Examples of poten- the respectful areas of comparative advan-tial programs include:6 (i) a data-base and tage.library on best practices and municipal inno- The role of the center. In accordance withvations; (ii) a program of telephone consul- the strategic components we are proposing,tations for mayors, council members and the role of the center would be much morecitizens; (iii) study tours to places of out- sharply focused on developing ways to lever-standing practice; and (iv) advisory services age incentives already being created in civilon how to recruit and sign contracts with society. National authorities would thus be-NGOs, universities, cooperation agencies, come enablers of possibilities, rather thanand the like. direct builders of municipal institutional

The environment of local institutional strength. This will involve interventions suchchange. Overall, the legal and political re- as public affairs campaigns and the collec-forms that have shaped the new system of tion and dissemination of information on lo-decentralized governance are propitious to cal government performance suggested inthe development of local capacity. However, this chapter. In doing this, national authori-uncertainty about the meaning of reforms, ties will need to clarify the specific respon-coupled with a legacy of strained relations, sibilities of the different organisms currently

involved in these areas.

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Whenever circumstances justify it-for ex- and enablers of the efforts conducted at theample, in terms of public information about local level. In several cases-such as Antio-the legal framework-the center should in- quia and Valle-they are already fulfillingtervene to remove obstacles in the way of that role. But, according to the evidence col-local governments. Several examples were lected, they are exceptions rather than theidentified in this chapter. The relatively high rule. This suggests the need to consider wayscosts of capacity enhancing programs faced in which departments may consolidate theirby small and weak muni cipios may justify relationship with municipal governments,some type of subsidy, probably in the form emphasizing voluntary cooperation betweenof a matching grant (see Box 4.2). The na- themtional government could make funds avail- Municipal associations. Cooperative formsable to qualifying municipios that present a of associations between municipalities cancapacity development plan or programs that of aniortant bet in thicapach, pan

estalishcomptitie crteri forentr and play an Important role in this approach, par-establis.h competitive criteria for entry and ticularlv for small municipios experiencingpromotion of municipal staff. capacity limitations due to insufficient scale.Departments. In many cases departments Several of those associations are alreadythemselves are in need of capacity strength- making important contributions to theirening. Ideally, they should become partners members. An important element of the strat-

Bo. An a oegy we are proposing consists of financial:Box 4,2: A new approach to technical assis-:tanceUnder a demand-driven approach to technical BoX 4.3: The role of municipal assoeialions8assistance, a variety of sources-sectoral min- Both from a theoretical and practical point- ofistries, bilateral cooperation agencies, multilat-. view, municipal :associations: are potentially;eral institutions, private sector organizations- well equipped to contribute.to.local capacity.make financial resources available to local or development by; (a) suppotinig projects withregional governments pursiing- programs. of externalities benefiting two or more munici-institutional strengthening. Each source could palities; (b) promoting projects with ocono-establish the possible uses, eligibility criteria mies of scale, particularly visible in' sharingand matching tates for ther. finds. personnel, equip.ment, infrastnrcture and re-.Information on fuiads can be centralized in one gional expertise; (c) preparing regional devel-.national agency which would identify and ad- opment plans or strengthening. loal institu-vise governments on possible sources consis-. tions by way of collectively training local.tent with their needs, and their conditions. In managers.and streamlining local adriistra-order for funding to be approved, the applicant tions; (d) exchanging information .and devel-needs to show a clea indication that the pro- opig common information systems for. eo-clear indication ~~~~nomnic and social policies for: the sbeion;posal has: local support. This would involve, argaing pow ofor example, a pacto de compromiso with local (e) strengthening the babusiness and community organizations municipalities, particularly small ones, for

business and cofinancing and other negotiating schemesThe recipient has the freedom to select the with central and regional government; (I)providers of support and other contractors. reaching municipalities in subregionsthatheFunding imposes the requirement to present a intermediate levels find hard to reach.partial and final report relating the use of the . . . . :funds and their impact. This report must bediscussed locally with the signers of the pacto incentives-such as grants to pay for start up-de compromiso and a copy remitted to the costs-and conscious efforts to multiplyrclevant source of finds. On an annual basis, these and other links between municipalities.the program would contract out evaluations of The Federacidn Colombiana de Municipiosa selected group of experiences, could play a very important role, but it needs

to regain its legitimacy among members and

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build up its own capacity and human re- work everywhere in the country and will notsources. address some of the formalized needs for lo-

cal management, such as regulatory frame-L vel acito In i a c, t works and development of career schemes for

many civil society actors-public and pri- professionals. We offer these concepts andvate, national, regional and local-become ideas as an input for discussion and consid-the agents of change. The heart of the strat-egy proposed here is to enhance the incen- eration by all the relevant parties to this en-tives for local governments to find and adapt terprse. The World Bank is ready to supportinnovations they need, to improve the infor- them.mation officials and voters alike need tomake informed decisions, and to let votertaxpayers at the polls, as well as throughother modes of participation, voice their ap- Three areas are emphasized in the proposal:proval or disapproval for local performance. (i) development of civil society, (ii) consoli-Such participatory forms of local governance dation of the institutional structure of civilconstitute one of the kev conditions for the society; and (iii) political participation. See

constitute on of the key conditions forthePresidencia de la Rep6blica and DNPsustainability of local capacity development (1994). pp. 208-211.efforts. Municipal watchdog groups-local 2

or regional NGOs or national organiz-' The office of the vice-president can play anor regionl NGOs ornational rganiza-important role initiating these campaigns.tions-could be mobilized to develop per-formance indicators, spotlight and reward 3 El Salto Social, proposes to implement theoutstanding performance, and publish results Fondo de Participaci6n Ciudadana, thatnationally and locally. National authorities would cofinance research and action proj-would move into action as a last resort sanc- ects related to participation by universities,tion against the most egregious malfeasance. NGOs and private organizations.

4 See Llorente and Rojas (1995).Concluding remarks 5 El Salto Social proposes to establish incen-

The study shows that capacity can bc home tives to stimulate the consolidation of NGOsgrown without outside help, in both small operating in rural areas. This proposal isplaces and large. Though the country has consistentwith theproposed approach.more than a 1000 municipalities, the small 6 Many of these ideas are already in practicesample reviewed in this study suggests that in Colombia but with limited coverage. Forsize is not necessarily a predictor of capacity. example, IDEA has a toll-free telephone

ze ise nskillful innovations in the very small consultation service for mayors in Antio-We see quia. PROCOMIJN has been developing aand serious shortcomings in the verv large.I ~~~~data bank on best practices. PDI providedThe important factor is determination at the advisorv senrices on recruitment and con-local level, and recent reforms appear to be tracts.effective in building political will. Neverthe- Among others, DNP, several sectoral minis-

less, economies of thresholds, if not of scale, tries, the soon to be created Ministry of theneed to be taken into account when consider-inee tohbe takenie itof accountv w vencopensd Interior and the office of the vice-president.ing the specifics of a capacitY developmentSeRoa(19)program. See Rojas (1994).

This approach to capacity development issketched out as a concept, not a blueprint.Further detail, delivery mechanisms, andprogram components still need to be devel-oped. Furthermore, this approach may not

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Annex 1: The municipios studied

The sixteen municipios for the study were The in-depth case studies do not pretend toselected based on the criteria that they had be statistically representative. In that sense,interesting experiences on performance and the results obtained refer exclusively to thestrengthening of the management capacity municipios studied. However, these resultswithin the decentralization process. By this, provide indicators of general situations.it was understood that efforts were made to: Since there is no information or statistics that(a) improve performance in terms of goods allow a classification of municipios as suc-and services provided to the community; and c- ~~~cessfuil or failures in terms of capacity devel-(b) increase Institutional capacity to comply opment, it was decided to use the knowledgewith the new responsibilities. It was under- I

stoodthatthoseexpe'encs woud inolve of experts linked to the field of local devel-stood that those experiences would involve opment to identif interesting cases.both successful and failed efforts. opment to I y I

After a first round of consultations with theAdditionally, it was considered necessary to experts, a set of municipalities that wereobserve municipios with different population entioned i severa occasions was ieni

mentioned in several occasions was identi-sizes and from diverse regions of the country, fled. To increase the number of municipios

with the assumption that these variables with a population of less than 50,000, a sec-might affect performnance and institutional ond round of consultations took place focus-capacity. It was decided to cover a group of ing on the departments to which the original16 municipios distributed as follows: municipalities belonged to.

POPULATION MUNICIPIOS After the second round of consultations with

More than 100,000 the experts and according with the frequencybut less than 400,000 2 with which they were mentioned, 50 munici-

From 50,000 to 100,000 2 palities were identified. Finally, from thelatter group and taking into account repeated

From 20,000 to 50,000 6 references by the experts and an adequate

Less than 20,000 6 regional distribution, the final 16 municipioswere selected. The following table providessome basic information on them.

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Municipio | Department [ Population % Rural._____________ _I in 1993* in 1993

Puerto Narinio Amazonas 2,904 62.3

Cucunuba Cundinamarca 7,715 87.5

Zapatoca Santander 10,263 40.8

Belalcazar Caldas 13,543 59.2

Versalles Valle 11,028 59.6

La Mesa Cundinamarca 19,132 56.6

San Juan Nepomuceno Bolivar 30,514 41.8

Pensilvania Caldas 21,176 59.3

Libano Tolima 34,813 30.1

PuertoTejada Cauca 35,371 85.1

Jamundi Valle 42,836 30.6

Piedecuesta Santander 60,351 17.3

Zipaquira Cundinamarca 70,620 12.0

Ipiales Narinio 70,965 12.5

Valledupar Cesar 235,993 11.3

Manizales Caldas 367,635 7.2

'These correspond to preliminary information from the 1993 census, which is likely to change. Several mu-nicipios have challenged the results from the census. For example Pensilvania, where projected population fig-ures differ from census data by approximately 10.000 inhabitants.

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Annex 2: The basic norms ruling decentralization

Political issues bilities among govermnent levels, principally

Legislative Act No. I of 1986 - Establishes in water, health and education.the popular election of mayors. Law 42 of 1993 - Establishes rules for fiscal

Law 11 of 1986: Basic Statute of the Mu- control of public administrations at all levels

nicipal Administration - To modernize local of government.administration and promote community par- Law 80 of 1993 - Establishes rules for publicticipation in management of local affairs. sector's contracting procedures.

Law 42 of 1989 - Establishes rules for local Decree 1542 of 1991 - Creates the Nationalpopular consultation processes. Support System of Institutional Development

Law 131 of 1994 - Bylaws for the program- of Municipalities.matic vote. Law 136 of 1994 - Establishes organizational

Law 134 of 1994 - Establishes rules for norms for municipal administrations.means for community participation. Decree 2626 of 1994 - Compiles norms in

force related to municipalities.Fiscal issues Law 152 of 1994: Planning - Establishes

Law 14 of 1983 - Strengthens the fiscal units rules for the constitutional obligation of theof territorial entities. central, departmental and local governments

Law 12 of 1986 - Increases national transfers to formulate development plans.from VAT to municipalities. Sectoral

Law 60 of 1993 - Defines competencies and Agriculture - Law 101 of 1993; Law 160 ofresponsibilities among central, departmental 1994and local governments, especially on socialand fiscal aspects. It also establishes the Education - Law 24 of 1988; Law 29 ofshare of national current revenues to be 1989; Law 115 of 1993.tranisferred to municipalities. Environment - Law 99 of 1993.

Law 141 of 1994 - Rules the distribution of Health - Law 10 of 1990; Law 100 of 1993;oil royalties among levels of government Decree 1216 of 1989; Decree 1862 of 1990.

Administrative issues Housing - Law 3 of 1991.

Decree 1222 of 1986 - Issues the Depart- Public Services - Law 142 of 1994.mental Regime Code. Transport - Laws 105 and 70 of 1993; De-

Decree 1333 of 1986 - Issues the Municipal cree 80 of 1987; Decree 2444 of 1989.Regime Code. Urban Development - Law 9 of 1989.

Law 3 of 1986 - Establishes functions tomodernize departmental administration.

Decree 77 of 1987 Basic Statute of Decen-tralization - Allocates functional responsi-

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Annex 3: A conceptual framework to analyze capacity

This annex presents the basic conceptual of local taxation and public spending. Thus,framework used in the case studies that the actual position of the PPF is also affectedconstitute the basis of this report. by local choices. As a result, two communi-

ties with identical endowments and produc-A simple model of the local govern- tion conditions could face a different PPFment depending on their choice of taxation level.3

We begin with a simple and informal model Each municipality will face a different fron-of local governments seen as agents respon- tier depending on resources-richer munici-sible for certain activities ('provision of pub- palities facing a wider set. Depending onlic goods and services') that affect commu- factors such as geographic location andnity's welfare. Decisions regarding those ac- population density, they may also face differ-tivities ('what, how, to whom') are shaped by ent opportunitics. For example, the cost oflocal and external forces-incentives-and services is likely to be higher in sparselybased on available economic, technical and populated municipalities that would, as ahuman resources. In this context incentives result, face a different production possibilityinclude all positive and negative rewards and frontier than more densely populated ones.penalties-not just financial-that individu-pnlisojutinancial-that individu- Similarlv, the type of responsibilities beingals or governments expect from their actions c dered wil vary between municipali-.. . . ~~~~~~~~consldre Il var beweIumlagiven the political, physlcal and social rules

under~ ~ whc thyoert. ties-road construction wvill have a verv dif-ferent meaning in a large urban area than in a

At any point in time, financial resources and small and remote rural municipality. Agricul-local production conditions determine the tural extension is unlikely to be an importantfeasible set of local govermment output activity in mostly urban municipalities. In the(defined in terms of units of public goods and case studies, we concentrate our attention onservices such as kilometers of roads, number three sectors-education, water and roads.of people connected to piped water or num-ber of children completing primary school), Local government performancewhich we characterize as the production This simple framework supplies the mainpossibility frontier (PPF). As it is conven-tionally understood, the PPF indicates the elements for an assessment of the perform-trade-off faced by the local government when role in the provision of public goods andchoosing the combination of public goods rvie in all ce pefrac mus beand services it will provide 2 In making these services. In all cases, performance must bechoices, local governments can follow differ- considr resource nothe words warent routes or criteria, which will reflect more interested in determining whether the munici-or less accurately communitv preferences. meetdI eemnn hte h uii

pality is doing as well as possible, consider-Local fiscal choice also involves the overall ing the funds to which it has access and thelevel of public goods and services to be pro- local production conditions.vided. For a given local tax base and the ex-isting inter-governmental assignment of tax- to eflcaedco its tha imlesing authority and revenue-sharing arrange- ment to be located on its PPF and impliesments, there exists a trade-off betwveen the that public goods or services are producedmenvision thee ebis and trivade-goff s. be n tand delivered at lowest unit costs. In otherprovision of public and private goods. Coin- words, production efficiency requires that nomunities can choose different combinations inrese output of fic good o

Increase In the output of a specific good or

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service be possible without a corresponding public expenditure and will correspondinglyreduction in the output of another sector or be unwilling to meet the standards deter-activity. It also implies that the revenue mined by the center. In those cases, it ismobilization effort to finance these activities through the use of financial incentives thatis effectively done. Production efficiency also the center can more effectively affect localrequires local governments to adapt to choices. For example, the central govem-changing circumstances and innovate their ment's use of matching grants for specificpractices in order to expand, over time, the goods or services provides the incentives forrange of altematives open to them. the local govenmment to change the composi-

Allocative efficiency requires the mix of tion of its output in their favor.5 It is alsopublic goods and services-and their delivery possible that minimum spending allocationmodes-to be consistent with community rules be inconsistent with local felt needs.preferences. In formal terms, this condition In the case studies four main criteria of allo-implies that the government maximizes local cative efficiency are considered: (i) the exis-social welfare-that is, positions itself on the tence of flagrant6 inter-sectoral distortions inpoint where the PPF is tangent to the highest the allocation of public resource, (ii) theachievable social indifference curve.4 In other consistency of intra-sectoral-for example,words, efficiency implies that no reallocation primary vs. secondary education- allocationof resources from one activity to another can of public funds with local felt needs, (iii) theimprove local social welfare. degree to which the more distant rural com-

This definition of allocative efficiency under- munities in the municipality are served byscores the importance of the process of local public services compared with more centrallypreference formation. In particular, under located urban areas, and (iv) the extent tothis approach, achieving poverty alleviation which there is a bias against the poor in thegoals requires that the interests and prefer- allocation of public resources.ences of the poor be adequately represented The notion of performance we are proposingin public choices. Formally, it implies that has a clear dynamic sense to it: a good per-the preferences of the poor be given a mini- former is one that has made significant prog-mum weight in the social welfare function. ress. Thus the case studies document the re-

In a multi-tiered system of government- cent past as a contextual basis for under-such as Colombia's-local governments are standing success and failure from each of thenot fully autonomous and operate under major informants. The purpose of such anmandates from central authorities. These exercise is to distinguish institutionallymandaes fom cntra autorites. hese flexible and innovative municipalities frommandates could imply, for example, the pro- rigid and tradition-bound fromvision of minimum service levels. In princi- rigid and tradition-bound ones.ple, and assuming municipalities have accessto the required financial resources, local gov- Local government capacityemnment performance could also be judged on Capacity, in this context, should be under-the basis of those mandates. stood as an enabling factor: the effective ex-

ln some cases the satisfaction of centrally istence, at the local level, of the tools thatIn omecass te stisacton f cntrlly make possible for the local govermnent todetermined minimum standards or the sec- makeopossiblesforythe categorize totoral allocation of resources mandated by the perform successfully. We categorize thoselaw, could be inconsistent with allocative tools-referred as the dimensions of localefficiency (as defined above). For example, it capacity-as labor, capital and technology.is conceivable that certain communities pre- We say there is a capacity problem when afer a combination of lower taxes and less municipality is unable to achieve its per-

formance goals even though it has access to

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the necessary financial resources. Such in- factors in a production function-labor,ability will be associated with weaknesses capital and technology. This choice of wordsalong one or more dimensions. is meant to reflect the notion that local ca-

In this framework, capacity should be as- pacity is, largely, endogenously deter-sessed in relation to the goals of production mined-the outcome of 'investment" deci-and allocative efficiency; sions in these dimensions.

Capacity for production efficiency is Labor. A key dimension of local governmentmanifested in the presence of a capacity is the quality of its staff, which weperformance-oriented government. It view as a function of their skills and of the wayrequires that the government have the tools such skills are utilized within the local bureau-to optimize the use of resources in the cratic structure,7 to which we will refer as staffproduction or provision process. In this professionalization. It is the combination ofcontext, the analysis of local capacity skills and professionalization that determineinvolves the identification of local and staff quality. While in many cases inadequateexternal factors that discourage or impede or insufficient skills can explain weak ca-(encourage or facilitate) governments from pacity, in other occasions the limiting factorbeing positioned on the PPF, and slow is their ineffective use. Thus, civil servicedown (accelerate) its progress over time. issues-personnel policies and reward sys-Having the tools to mobilize resources (for tems-are important factors to be consideredexample, through a more efficient tax in any analysis of capacity. Also, skills cancollection system), would result in a wider be seen as the combination of time and spacepossibility set. In that sense, one could add information-the indigenous, unstructuredto the analysis the concept of "capacity' to understanding of local circumstances-andmobilize resources-different to the scientific and technical knowledge.8 A focustraditional concepts of fiscal capacity and on formal training as a determinant of skillsfiscal effort-referring to the ability to would emphasize the second at the expensemaximize revenue collection for given of the first type of knowledge.

fiscal parameers. Conventionally, staff quality tends to be as-C apacity for allocathve efficiency IS* Capacity for allocative efficiency is sociated with capacity for production effi-manifested im the presence of a customer- ciency-for example, better 'technicians"

oriented government. In this context, local make the local government more capable tocapacity implies the existence and adequate expand the provision of public services.functioning of mechanisms through which However, this dimension of local capacity

the community can voice demands, could also be important for the achievementchannels by which authorities can translate of allocative efficiency which might requirethose demands into actions and instruments s fic skills and different motivations forfor government accountability. The sector epoespresumption is that failure in any of theseelements would greatly diminish the Capital. Most public sector activities requirecapacity of local governments to achieve the use of capital in addition to labor. Highthe allocation of public resources that quality labor could become ineffective when,mnaximizes local welfare. for example, working in run-down buildings

or without access to the necessary equip-We analyze local capacitv in three main di- mn Sim. - ~~~~~ment. Similarly, attempts at reaching out tonmensions. Each dimension constitutes a setOf tools that positions the gwoverrnment to ditncountesaimrateletofhieve t rool dt tioeans thocagovernmentcto for the achievement of allocative efficiency-achieve productive and allocative efficiency. cudbvrsrtdb ako rnpr- could be frustrated by lack of transportWe have labeled them as the conventional equipment. While labor should be seen as the

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'human dimension" of local capacity, capital in the public sector that is required-sub-can be regarded as the "physical dimension". contracting, for example, requires the skills to

Technology. This dimension of capacity con- draft contracts and choose among bidders.sists of the government's internal organizationand management style. It includes aspects re- See Ostrom and others (1993).lated to the: (i) structure and distnrbution offunctions and responsibilities within the organi- 2 The PPF follows conventional micro-zation, (ii) management, planning, decision- economic concepts. For each good or serv-making and control and evaluation functions, ice the local government faces a productionand (gi) infornation gathering, process'nf and function which indicates output as a func-distribution.frg tion of the resources used, using efficient

methods. The government faces a budgetAlong these dimensions, local government ca- constraint which determines the resoucespacity for production efficiency is expressed in available for these actitivies. In the case ofthe existence of an organization in which re- two goods, the PPF is represented as a curvethepexisibilitie are orgamzat ioned w hhi nich rindicating the feasible combination of thesponsibilities are matched with implementing two goods the local government can achievebodies, tasks and output are clearly defined, if it is efficient in the use of resources.management techniques are effective, and in- Another way of formalizing this is by in-fomiation floNvs as needed. Local govermmentcapacity for allocative efficiency requires the cluding both public and private goods in thedevelopment of a diametrically different type of production possibility frontier.organization to that prevailing under a highly ' The social indifference curve shows thecentralized system of governance-one with combination of goods and services whichmore horizontal linkages and fewer or different generate a certain level of social utility.vertical ones. Local capacity, thus, irnplies the ' Formally, a matching grant has both anexistence of an organization less inward-looking income and price effect. The grant relaxesand more open to the outside world, particularly the budget constraint (shifting the PPF out).at the local level. In addition, to the extent that It also lowers the relative cost of the serviceindividual and group preferences are heteroge- or good being supported which, under nor-neous and conflicting demands exist at the local mal demand conditions, should experiencelevel, an efficient and fair allocation of public an increase in its output levels.resources requires an organization prepared to 6 The Ley de Competencias y Recursos es-mediate conflicts and generate social consensus. tablishes broad guidelines for the intersec-

toral allocation of funds originated inCapacity, measured along the three dimensions, transfers. In that sense, in most cases, suchdoes not need to reside in the public sector to allocation will probably not be a good indi-contribute to the achievement of a high perform- cator of efficiency. However, significant al-ing local government. Indeed, an effective gov- locative inefficiencies can be present whenenment should be able to use the capacity that the sectoral composition of local public ex-exists outside the public sector-in the private penditures is notably biased towards activi-exist outide he putic ecto-in te prvateties that do not correspond to felt needs.sector, among NGOs, and within the commu- Olysuch do biases to lt bcnitv at large. For example, a private truck can Only such major biases are likely to bebe rented to reach a remote community when- good indicators in the Colombian context.ever no such equipment is available within the 7 Formally, the introduction of the distinctioncorresponding public agency. The lack of a between skills and their utilization is paral-specific skill within the public sector can be lel to that between "labor units" and

compensate by involing an NG with the"effective labor units" as production factorscompensated by 'tvolving an NGO with thetyiaofnwgwhteresrelevant technical expertise. In all cases, how- o

ever, there is a minimum element of capacity 8 See Ostrom and others (1993).

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Annex 4: Performance indicators in the water sector

Status of the sector Quality Continuity UFW* Operative Ratio Collection rate

Puerto Narifio Municipio Does not satisfy norms 3 hours n.a. 609% 23%

Cucunuba Municipio Does not satisfy norms 12-24 hours n.a. 179% n.a.

Zapatoca Municipio Satisfies norms 24 hours n.a. 108% 96%

Belalcazar Departmental enterprise Satisfies norms 24 hours n.a. 128% 81%

Versalles Municipio Does not satisfy norms 2 hours n.a. n.a. n.a.

La Mesa Municipio Satisfies norms 21-24 hours 28% 65% 91%

Jamundi Departmental enterprise Satisfies norms 24 hours 32% 60% 97%

Libano Municipal enterprise Satisfies norms 22 hours n.a. 88% n.a.

Pensilvania Municipal enterprise Does not satisfy norms 24 hours n.a. 107% 70%

San Juan Nepomuceno Municipal enterprise Satisfies norms 8-14 hours 25% 189% 69%

Puerto Tejada Municipal enterprise Does not satisfy norms 6 hours n.a. n.a. 67%.

Piedecuesta Bucaramanga's enterprise Satisfies norms 24 hours 37% 60% 100%

Zipaquira Municipal enterprise Satisfies norms 12 hours n.a. 47% n.a.

Ipiales Municipal enterprise Satisfies norms 24 hours 46% 84% n.a

Valledupar Municipal enterprise Satisfies norms 24 hours 44% 38% 94%

Manizales Municipal enterprise Satisfies norms 24 hours 31% 31% 89%

*UFW: Unaccounted for water.

Source: Case studies

Annex 5: Measuring performance

This annex presents the results of a prelimi- formance. Once this group is separated fromnary attempt to develop a simple system by the rest, the apparent correlation disappearswhich local government performance is as group 4 has higher scores than group 3. Inmeasured.' Each muniicipio is given three fact, there is a negative corrclation betweenscores for each sector (i.e. water. education population and performance (correlation co-and roads) corresponding to notions of pro- efficient of -4 percent).duction efficiency, intrasectoral and intersec-toral balance and distributive performance 2 Another fact that deserves to be mentioned isTore balanes and disectorlbutie perfoistrmanc the consistency between different dimensionsThe scores for sectoral balance and distribu- ofprrmneThsmuipatesht

of performance. Those mun'c'palities thattive performance are averaged to generate I Ione score for allocative efficiencv. score high under production efficiency do so

one screfr llctieefecalso under allocative efficiency. The correla-Municipios were graded on a scale of 0 to 2 tion between the two measures is 73 percent.(0 meaning no progress since decentraliza- On average, it is not easy to find a sectoraltion, I some progress, and 2 significant prog- pattern n performsance. Indeed, the threeress). The following table presents the stan- s s idardized scores measured on a scale of I to100, with municipios grouped bv size. and a the results are analyzed by population group,

a pattern emerges. Among smaller munici-simple average for the sixteen municipios. palities (groups 3 and 4) water and roads

The first fact to be noticed is that average tend to show relatively higher scores thanscores are quite high, indicating there was education. This is reversed for group 2significant progress according to these crite- (municipalities in the 50-100,000 populationria. The average performance score was range).74.35. This is the equivalent to a raw score One possible interpretation would indicateof almost nine points (which, for example, .would obtain for a municipality that made these results reflect differcnt prorities. The

significant progress in allocative efficiency very small municipalities tend to emphasizesignificant progress in allocative efficiency water which, in most cases, constitutes theand some progress in production efficiency in ethe three sectors). - main problem they are currently experienc-

ing. This is the first thing elected mayors do.The average score was higher for allocative Larger municipalities, already have betterthan for production efficiency (77.9 and 70.8 coverage in water (and most likely roads)respectively). This result confirms conven- and, as a result, education becomes a focaltional perceptions that decentralization is point for municipal action.more likely to generate gains in allocationthan in production efficiency. However, theseresults seem to indicate that even the latterare quite large.

Group I (municipalities of more than See Acevedo and Fiszbein (1995).100,000 inhabitants) shows the highest 2 The latter is understood as attention givenscores. This is due to the fact that the two The lal inistration givenlargest municipalities in our sample are very by the local administration to rural areas ofhigh performers. This, however, should not the municipio and to the poor.be interpreted as indicating the existence of apositive correlation between size and per-

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Annex 6: Opinion surveys

Opinion surveys were conducted in the four population by socio-economic strata. Thelargest municipios in the sample.' The surveys sample size was 600 in Manizales, 500 inused a representative sample of the adult Valledupar, and 400 in Ipiales and Zipaquira.

______________ _ Manizales Valledupar Ipiales Zipaqr

Who should be in charge of water?Municipio 62% 58% 41% 47%Department 14% 15% 9% 7%National government 5% 9% 10% 5%Private sector 18% 17% 35% 39%

Who should be in charge of education?Municipio 52% 33% 34% 40%Department 21% 20% 11% 21%National government 16% 34% 36% 19%Private sector 11% 11% 15% 17%

Who should be in charge of roads?Municipio 53% 46% 39% 39%Department 13% 8% 10% 13%National government 16% 12% 23% 13%Private sector 18% 33% 24% 34%

Who do you trust more?Municipio 92% 94% 73% 57%National government 8% 6% 27% 43%

Believes local government makes ef-forts to do projects at least cost:

55% 71% 39% 44%Municipio completes projects?

89% 87% 61% 41%Is willing to contribute to municipalprojects:

with labor 63% 64% 67% 65%through higher taxes 14% 2% 4% 4%

The surveys were coducted during the secondhalf of the month of September of 1994 bySistemas Especializados de lnformaci6n,S.A.

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Annex 7: A profile of Colombian mayors

The following information describes the 20-50,000 is 41, and between 100-500,000 ischaracteristics and background of Colombian 42.mayors. The source is a survey conducted by More than half (53 percent) the mayors

the French Technical Cooperation Agency worked in the private sector immediately be-and the Federacl6n Colombiana de Mu- fore taking office. However, more than 80nicipios. Forms were submitted to all mu- 'nicipalities during the first quarter of 1994.Approximately 40 percent of all mayors re- experience in the public sector. One in fourmayors hold that office before.sponded the survey. Whenever possible, wecompare this information with the profile of An interesting finding of the survey is thethe mayors of the sixteen municipios covered negative correlation between the municipal-in this study. ity's size and the number of trips the mayor

makes to Bogota. Mayors in municipalitiesThe first thing to notice is that most mayors ofkes th 10,000 Maye an averageoof less than 10,000 make an average of 5are males: 92 percent of respondents. In thatsense, the municipios in our sample were trips, and in those between 50-00,000 1.8trips, and In those between 50-100,000 1.8representative: only one of the sixteen may- . M fmors (i.e. Puerto Tejada) was female. trps Maosfo h ags uiiaiis

however, make more trips (those betweenIn terms of their education level, 87 percent 100-500,000 make 5.4 trips). This informa-of the mayors in the survey have at least sec- tion confirms a finding of the case studies,ondary education and 52 percent a university suggesting the importance of direct lobbyingdegree. The level of education is lower for by mayors to obtain resources from nationalmayors in smaller municipalities. For exam- agencies.ple, 18 percent of mayors in municipalities Interestingly, only 9 percent of the mayors

vlth population lower than 10,000 have less . .with population lower than10,000haveles identified "capacity" as the first obstacle forthan secondary education, while no mayor their administration. The larger the munici-

falls in that category in municipalities of pahltv the more important this obstacle was.more than 50,000.more than 50,000. In municipalities of less than 10,000 only 5Smaller municipalities have younger mayors. percent of the mayors identified capacity as aAverage age for mayors of municipalities of problem, while the same percentage was 33less than 10,000 inhabitants is 38, between percent among the largest ones.

l We wish to thank Silvia Sommaruga for hersupport in having access to this data andpreparing the information for our analysis.

- 46 -

Annex 8: Municipal employment in Colombia

The survey used in Annex 7 also provides this would be consistent with the findings ofinformation on the level and composition of the case studies, which suggest that mu-municipal employment. The following table nicipios in this range seem to experience dif-summarizes some of the key indicators. The ficulties in establishing an effective munci-size of local administrations decreases with pal organization. Finally, the ratio of profes-the municipality's size, providing some em- sionals among all municipal employees fallspirical support to the view that economies of with municipal size. This again, is a reflec-scale may exist. In that respect, municipios tion of certain economies of scale: there is ain the third group (population between 20- minimum number of professionals a mu-50,000) seem to have a higher ratio of em- nicipio needs. That number does not increaseployees to population. This could be an indi- proportionally with size.cator of possible labor redundancies. In part,

Municipio Municipal employees Employees per Average Number ofsize per thousand inhabitants each professional professionals

less than 10,000 3.0 11 2

10-20,000 2.7 17 4

20-50,000 3.1 18 8

50-100,000 2.4 18 19

100-500,000 2.3 21 47

500,000 or more 1.8 24 922

Average 2.8 16 17

- 47 -

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