State Chancellery of the Republic of Moldova

Local Governments in Republic of Moldova in terms of Decentralization Reform

december, 2012

Government's vision
The concept of decentralization reform based on rights and gender issues (REAL improvement of administrative and fiscal decentralization / local autonomy ) Decentralization - phased process expanding the areas of responsibility of the LPA separate the different levels of government

Public policy issues addressed by the LPA:

Current situation, existing problems and development tendencies of public local administration from Republic of Moldova; Official vision for the development of local government during the next years; Tasks to improve the LPA domain; Potential risks in implementation; Financial and non-financial costs due to the course of decentralization reform

General Context

Decentralization policies are found in most national policies, as the Government recognises their necessity to ensure the regional development, taking into account international experience regarding the consolidation of LPA potential.

Areas of intervention Decentralization of services and skills Financial decentralization Decentralization of assets Local development Administrative LPA capacity Institutional LPA capacity Democracy, ethics, human rights and gender equality

Agreed principles on decentralization

Human Rights and Gender Equality Proving of the LPA responsibility in front of the citizens Transfer of the powers to LPA clearly legal Money and assets depending on the function Investment followed by competence Subsidiarity and efficiency Correspondence between a) providing service and collecting taxes b) "beneficiary and payer c) power of decision and responsibility Territorial cohesion by reducing disparities Stimulation of own fiscal effort Monitoring, audit and control Predictability, stability and autonomy of the financial system Financial discipline and transparency in budget execution

Reports:
- Administrative-territorial units of the Republic of Moldova generally have limited institutional, financial and material capacity; - Chronic underfunding; - Lack of legal and regulatory framework that clearly define the powers and responsibilities between different levels; - Responsibilities are given without determining the source of funding; - Realizing the responsibillities is largely dependent on transfers from the state budget, hence obviously very low degree of local autonomy, - Competences in education, health, social protection, local property management are blurred and contradictory;

Reports:
Lack or insufficient information on the systems (internet, email addresses, etc..) diminishes the possibilities of obtaining the necessary information to community members as well as efficiency of civil servants; Involving civic society in the LPA is not valued sufficiently; Lack of optimal motivation and development of the human factor in LPA influences the achievements; Capacity for strategic planning and investment attraction is diminished by the absence of the sufficiently trained LPA staff in these areas; Public-private partnerships have an insignificant development; Partnerships with civil society, academy and science as well as othe target groups in society are not fully developed.

National Decentralization Strategy objective:

A local public administration that operates democratically and autonomously, has adequate resources and capacity to deliver public services according to the needs and preferences of beneficiaries on the basis of efficiency, effectiveness and financial discipline.

Approved approaches: Decentralization of services and competences: Reform to complete the establishment of a system of transfer of competences between the CPA and a functional, clear, stable LPA correlated with available resources and administrative capacities of administrative units. Financial Decentralization: Improving the current system of local public finance, in order to ensure the financial autonomy of local governments, maintaining financial discipline, maximizing efficiency and ensuring equality in resource allocation.

Approved approaches:

Decentralization of assets: Complete the division of state assets from the assets of administrative units, of public supplies and private sector (including municipal / district assets), providing full management mechanisms, efficient, effective and accountable assets. Local Development: Modernisation of local public services management and building capacity to support integrated programs in local investment.

Approved approaches:

Administrative capacity: Following the implementation of the decentralization reform, to stimulate cooperation activities between local / regional authorities, which would contribute to the efficient delivery of public services by local governments.
Institutional Capacity: Developing an institutional and legal framework for human resource management in the LPA, in order to ensure full authority over the elected executive authority, transparent and non-discriminatory recruitment of officials, real motivation, stability of employment, reducing political influence on them, which contribute directly to improve personal and professional skills of the employees of LPA.

Approved approaches:

Democracy, Ethics, Human Rights and Equal Opportunities: Creating an institutional and legal framework that will ensure full autonomy of Local Public Authorities that will be accountable to the people, facilitate citizen participation in decision-making, ensure social equity and fighting discrimination.

Government commitment:
Providing: Decisional transparency Communication and Dialogue with all stakeholders: CPA and LPA authorities, civil society, science and academy, private sector, development partners, etc.

Additional Information:
Official page
www.descentralizare.gov.md

Department of decentralization policies in State Chancellery of the Republic of Moldova tel: 250 583 victoria.cujba@gov.md Thank you.