Decentralization in Thailand: Structural & Process Considerations Douglas Webster Capacity Building Project, ONDC May 15, 2002
Geographic Scale of Focus! + 7000 TAOs! Need to consider service thresholds (e.g., schools), economies of scale, & personnel sets Recommendation:! Tambon Consolidation! Province should be meeting point of RURAL- URBAN Bottom Up and Top Down Forces! Requires strengthening of PAO Role in Decentralization D. Webster - ONDC February 25, 2002 2
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Role of PAOs Possible Roles: 1. New Tier of service delivery? 2. Strategic planning big picture for province 3. Catalyst for extended urban region inter-jurisdictional co-ordination, integrated rural development & ruralurban linkages? 4. Helper, facilitator of TAO functions? Mainly Rural Mandate? Recommendation:! Should represent whole province focusing on roles 1, 2 & 3 D. Webster - ONDC February 25, 2002 4
Alternative: Boards Model! Alternative model would emphasize semiautonomous agencies as key planning & service delivery agents " Education & Health Boards, Watershed Committees (NWRC), Key Institutions (e.g., Universities)! TAOs would deliver very localized services " MAIN ROLE: voice of people! TAOs (plus PAO, NGOs, Private Sector) would sit on Governing Boards of Service Delivery Boards & Watershed Committees D. Webster - ONDC February 25, 2002 5
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Public Works & Projectize Bias! Public works emphasis to date " Especially pronounced in terms of Tesaban Tambons & TAOs " Reinforced by nat govt emphasis on decentralizing DPW functions + minor easy functions (milk progs, sport)! Little systematic addition of new programmatic functions Recommendations: Strong TA in social & developmental functions, nat govt push D. Webster - ONDC February 25, 2002 7
Forewarning! New functions & monetary resources should be pre-announced well in advance of budget years " Currently large reserve buildups related to lack of advance notice Recommendations:! At least 1 fiscal year advance notice to align personnel & local budgets! LGUs should be more aggressive in budgeting given context D. Webster - ONDC February 25, 2002 8
Rural-Urban Biases! Fiscally, strong rural bias " Most new functions & financial resources are being added to TAOs & PAOs " Cities (Tesaban) identify few new functions & limited increases in transfers " TAO inefficiencies may eat up redistribution effect! Personnel, strong urban bias " TAOs & Tesaban Tambon limited in levels of staff they can hire " Reluctance of people to work at TAO level D. Webster - ONDC February 25, 2002 9
Rural-Urban Biases (Cont.) Recommendations:! Add new urban functions (Tesabans ready)! More flexibility in TAO staffing (incentives?)! Consider developmental implications of ruralurban resource allocations! Consider radical change in role of TAOs to voice of people, community-organizing, coordination: NOT service delivery role D. Webster - ONDC February 25, 2002 10
Personnel Transfers! Personnel allotments should not necessarily correlate with additional resources, functions Recommendation:! Take advantage of decentralization to re-engineer local govt, especially at urban (Tesaban) & provincial (PAO) levels D. Webster - ONDC February 25, 2002 11
Costs of Decentralized Govt! At TAO Level, TAO often exists to serve Council, not Council to serve TAO Recommendation: Reduce number of representatives to 1 per village or less! Allow Budgetary increases (through increased transfers) to inflate problem away by holding line on honoraria D. Webster - ONDC February 25, 2002 12
Revenue Decentralization! Thailand s Decentralization only on expenditure side (increased grants, essentially same revenue generation powers) Recommendation:! Decentralization policy should be more symmetrical, i.e., revenue (tax) side reform by MOF is needed D. Webster - ONDC February 25, 2002 13
Assymetrical Decentralization?! Should functions be decentralized first to those LGUs that prove themselves most ready at any level?! Should some functions first be deconcentrated, before being devolved to LGUS? D. Webster - ONDC February 25, 2002 14
Budgeting / Performance Recommendations:! Expenditures from reserves should be treated same as annual budget expenditures! Budget should be by activity areas! Councils should approve accounts & budgets! Incentive needed: efficient service delivery, appropriate budget allocation, inter-jurisdictional cooperation! Leap frog to online submission of financial & socioeconomic indicators data to DOLA (& other central agencies, e.g., NSO, NESDB) D. Webster - ONDC February 25, 2002 15
CONCLUSION! Decentralization process would benefit from modification of policies and structures in Thailand based on experience to date D. Webster - ONDC February 25, 2002 16