Community-driven development decision tools for rural - IFAD

Government procedures andprocesses and CDDVIGovernment procedures and CDDThe CDD objective of fostering the local economy at the community level requires measures thatmaximize the multiplier effect of public expenditure. To achieve this objective• project expenditures should mobilize community-level suppliers;• non-discriminatory procurement and disbursement procedures should be used that encouragecommunity-level enterprises to respond to project demands for goods and services.These points naturally hold within the context of procurement for those goods and serviceswhich can be technically delivered by local enterprises (e.g. it is likely that hydroelectricinfrastructure cannot be delivered by local enterprises and will require external skills)As an integral part of creating an enabling environment for CBOs, CDD policy and projects facethe challenge of introducing procedures that facilitate CBOs’ operations. However, governmentprocedures are generally complicated and repetitive and can be instruments of exclusion, if appliedin the wrong context. They are normally designed for handling transactions of an entirely differentnature and size than the microprojects CDD wishes to entrust to the rural community. Lengthy andcomplex procedures are justified for large or medium-size contracts, but certainly inappropriate forsmall contracts. Adapting large contract procedures to microprojects is regressive because it becomesimpossible for small and micro local enterprises to participate in government-funded programmes.The standards applied to government contracts include conditions that are impossible for smallcommunity-level contractors to meet (e.g. presenting bank guarantees) and that are generallyunnecessary, given the very small amount of cash that the contractor would receive. Anotherexample is the requirements that CBOs must comply with to obtain juridical status and the longprocess that this normally requires even when the CBO is in a position to comply.Changing procedures to create opportunities for CBOs requirestaking the bold step of devolving decisions closer to thecommunity level. Only at that level is there adequate knowledgeBox 23about the capability and reliability of local contractors andCommon-sense questionssuppliers. Some IFAD CDD experiences in West Africa moved when analysingsuccessfully in this direction as did many Social Fund projectsproceduresfinanced by IFAD in Latin America. Other international financial • What is the specificinstitutions (IFIs) also have experimented in this matter, such as purpose of theprocedure?the World Bank with the Borgou project in Benin.• Is there a valid purposefor this procedure thatAnalysing proceduressupports the overall policyProcedures have purposes and require citizens to complete forms objective?• What does the procedureand provide required information. Each bureaucracy of the publiccontribute to achievingadministration has its own procedures. As a result, citizens oftenthe purpose?must follow multiple procedures simultaneously to obtain• What value is added byclearance to undertake even very simple initiatives.the procedure?Procedures have transaction costs for the public administration • Is the value addedand the ordinary citizen. The more complex the procedures, the commensurate withincremental costs bornehigher the transaction costs. With increasingly complexby the citizens?procedures, transaction costs increase much more for citizens• Is this procedure orthan for the administration. The administration’s transactioninformation step reallycosts are not borne by its officers, whereas ordinary citizens carry needed?the full burden of their share.43