Principles and Guidelines for Constituency Development Funds

IntroductionParliamentary involvement in grassroots communitydevelopment has grown considerably across Commonwealthcountries. One important tool in this effort has been theConstituency Development Fund (CDF), which appropriatesnational funding for MP-influenced, locally determined,constituency-level development. CDFs become legitimatemechanisms of development through their creation inlegislation. They also facilitate the legitimate connectionbetween Members of Parliament and their constituencies. Acentral hope behind CDFs is that local input promotes bettertargeting of projects to the needs of constituents, moreattention to implementation and a way of holding governmentofficials responsible for results by giving the capacity fordevelopment to MPs whose electoral fate will be locallydetermined.CPA Members recognize that CDFs should include steps toeliminate opportunities for corruption and be part ofcomprehensive development efforts. Below are principles andguidelines for the operation of CDFs that are consistent withinternational norms and values about legislative performanceand socio-economic development. These principles highlightthe importance of transparent project selection andimplementation in a manner that enables citizens to worktogether for the development of their constituency, demandaccountability and maintain regular oversight. Further, the2Principles and Guidelines for CDFs

administration and management of CDFs can empowerprovincial and district governments and professional experts toapply their own contextual knowledge to solve localdevelopment problems. CDFs also should foster public learningthrough monitoring and evaluation about what types ofdevelopment projects are most successful in meeting the needsof citizens and promoting community development.It is clear that the successful operation of any CDF is contingentupon strong MP involvement and leadership. As representativesof a constituency’s citizens, MPs play an essential role infacilitating citizen participation to make claims upongovernment services. In this role, MPs can ensure that CDFresources are used efficiently and honestly, with the intent tomeet the public interests of their constituencies. Thus, thepotential offered by CDFs hinges on the initiative of MPs andtheir dedication to empowering citizens to participate in theirown development.Principles and Guidelines for CDFsThe following are general principles of good governance thatshould apply to all CDFs across cases.I. ResponsivenessCDFs are a distributive policy tool designed to meet thedevelopment needs of citizens. Their success is contingent uponan inclusive process of consultation which fosters co-operationamong constituents, MPs, and technocratic experts. CDFinitiatives should respond to local developmental needs. On thisbasis, CDFs require channels of input for local citizens and civilsociety at all steps in decision-making on CDFs.• CDFs shall improve the well-being and livelihoods ofconstituents. The primary purpose of a CDF is to redirectadditional resources to constituencies to solvesocio-economic and humanitarian problems identified byPrinciples and Guidelines for CDFs 3

• All deliberative decisions made by MPs, CDF committeesand/or implementers and other bodies shall be open to thepublic. The flows of all CDF funds shall be transparent andtraceable to specific decision-making processes.• All financial information regarding the use of CDF funds onprojects shall be publicly available and documentedaccording to standard and auditable accounting principles.Documentation of CDF funding shall be made publiclyavailable in a timely manner.• CDF programmes shall ensure ease of access for all citizens,who shall be allowed tomake claims of redressand appeal regardingthe CDF processaccording to governmentregulations.III. Administration andManagementCDFs shall beadministered andmanaged in an efficient, effective and transparent manner. Inthis regard, MPs and committees and/or implementers shallfacilitate the process by mobilizing citizen participation,streamlining implementing mechanisms and proactivelycomplying with them. Such actions ensure that CDFadministration and management will be performed in a timelyfashion and remain faithful to the intent of CDFs.• CDF funds shall be allocated to individual constituencies in afair and equitable manner, regardless of MPs’ partisanship,gender, religion, race or ethnicity.• CDF funds shall be released in a timely manner and CDFprojects shall be completed in a timely manner. The releasePrinciples and Guidelines for CDFs 5

of funds shall not be employed as part of a legislativeelection campaign.• CDF funds shall be channeled to a separate account of apublic agency. Access to the funds shall be limited toofficially authorized administrators. Funds shall be managedaccording to the best practices of public financialmanagement.• The structure of CDF administration shall be clearly defined.Each administering body at corresponding levels shallfunction with unambiguous legitimate authority, explicitresponsibility and substantive commitments. The structureof authority will be clearly stated to the public to ensure thatcitizens are knowledgeable about the decision-makingprocess of CDF management.• A set of policies and procedures shall be made public toguide the implementation of the fund and the projects.• Funding shall be devoted to development in constituencies.Funded areas may include poverty reduction, infrastructure,water, education, health care, sanitation and disastermitigation, and shall address specific needs of individualconstituencies.• CDFs shall utilize all available technical expertise relevant toa particular project. Governments should make available to6Principles and Guidelines for CDFs

CDF implementing agencies relevant technical expertise.For example, public health professionals should beconsulted about any CDF project that seeks to improve thehealth care of constituents. Such expertise is essential toensure that development projects are carried out ineffective and efficient ways that improve livelihoods.• CDF committees and/or implementers shall coordinate theirprojects with similar initiatives of local governments andagencies of the central government in order to avoid waste,utilize resources efficiently, and strive for sustainability oflocal development.IV. Accountability and OversightAccountability and oversight play essential roles in promotingproject quality, improving decision-making, and preventingcorruption and abuse of CDF funds. Proper oversight of CDFfinancing ensures fiscal probity and promotes accountability tothe public among MPs and CDF committees and/orimplementers.• Within government regulations, MPs, CDF committees andimplementers shall be held accountable for their respectiveroles, conduct and decisions in the process of CDFimplementation.• Procedures and/or legal regulations shall be put in place tohold CDF actors accountable.• Appropriate entities with adequate monitoring andoversight capability shall be assigned responsibility foroverseeing CDF implementation.• Any findings and/or results of investigations shall bereleased to the public in a timely manner.V. Monitoring and EvaluationMonitoring and evaluation of CDF projects are essentialtasks to help ensure learning about what actions are mostPrinciples and Guidelines for CDFs 7

effective in fostering constituency development. Monitoringensures that CDF projects are progressing toward their goal,while evaluation assesses the efficiency, effectiveness,impact and results of a CDF project. MPs, among otherstakeholders, shall engage proactively in facilitating thisprocess.• Monitoring shall be performed throughout a CDF project toensure that it is progressing towards its publicly stated goal.Constituents and legitimate stakeholders shall be affordedopportunities to participate in the monitoring process.• If a monitoring entity determines that a project is deviatingfrom its stated goal; under government regulations, it shallmake recommendations about adjusting implementation.• Evaluation shall be conducted upon completion of projectsby appropriate government agencies. Evaluations shall bemade publicly available to ensure that CDF committeesand/or implementers are aware of the effectiveness ofprevious CDF projects.• In addition to monitoring and evaluation, CDF projects willbe subject to regular audits by appropriately designatedentities for the duration of the project.8Principles and Guidelines for CDFs

COMMONWEALTH PARLIAMENTARY ASSOCIATIONSECRETARIATSUITE 700, WESTMINSTER HOUSE, 7 MILLBANK,LONDON SW1P 3JA, UNITED KINGDOM.TEL.: (+44-20) 7799-1460FAX: (+44-20) 7222-6073E-MAIL: hq.sec@cpahq.orgWEBSITE: www.cpahq.orgDecember 2011