Lessons learned about the process of and techniques for effective implementation of projects to consolidate democratic practice through decentralization and the strengthening of local governance

The project has been characterized by an unusually high level of flexibility, aimed at enabling project staff to work simultaneously at the central, local, and grassroots levels, as well as by a high number of counterpart relationships between host country and U.S. local government practitioners. This report documents successes of and lessons learned to date from the project, with particular emphasis on the role of international donors in building strong municipal government in newly emerging democracies. The project itself has had some unique successes, including in Paraguay: (1) initiating and guiding the first public hearing ever held on the national budget; (2) establishment of the nation's first municipal-based public/private citizen advisory councils; (3) initiating the first public hearing by a Committee of the Congress, the Municipal Committee of the Chamber of Deputies; and (4) creation of the country's first citizens' commission designed to achieve policy consensus among contending political interests on a civic project. In Chile, at USAID's direction, the project was much narrower in scope, and worked through Chilean NGOs. Nevertheless, there also were noticeable successes, including the professionalization of the position of the city manager and the promotion of interest in new methods of local revenue generation. Key lessons learned are as follows. (1) Effecting significant institutional reform toward the goal of decentralization requires the commitment of a strong host country leader (e.g., a mayor, a Ministry head), who is willing to take political risks by promoting an often unpopular process. It also requires a period of time in which to build a relationship of trust. (2) Strengthening local government requires changes at the central level. (3) Since institutional and policy reform are ultimately political acts, it is necessary to work closely and extensively with political leaders and elected officials. (4) It is necessary to maintain flexibility in project design and implementation in order to be open to opportunities for reform as they arise. (5) Contrary to some opinions, foreign, in this case U.S., decentralization models, can have relevance to local conditions in the developing world. Often, as in this case, those foreign models are of great interest to local politicians in decentralizing countries. (6) The use of high-level U.S. practitioners has been very successful, since U.S. municipal officials face problems similar to those faced by their Latin counterparts and thus can readily win the latter's trust and responsiveness. (7) For politicians, all relationships are exchange relationships; if politicians of senior administrators are asked to give up authority in the process of decentralization, then they should gain other resources, such as political advancement, recognition, or publicity. (8) Since most people, whether elected or appointed, are quite reluctant to relinquish political authority, the mobilization of locally based elites and leaders is usually an important step in bringing about decentralization. (9) Most local government institutions require strengthening before they can operate effectively in a decentralized environment. (10) Local NGOs are often not very effective in delivering TA to local government since typically they lack the technical expertise and are seen by the local government -- which in any case generally suspects their motives -- as competitors for scarce resources. (11) The ability to influence policy and practice need not require large budgets. This project demonstrates that often what is needed is the capacity to build trust, good judgement, and perseverance.