National Policy on Local Government

The Local Government and Provincial Council Ministry has prepared a new National Policy Document on local governments embodying new principles and action plans for developing the local government bodies with greater community participation and coordination with provincial and central governmental institutions. The proposed new policy will feature new approaches including homegrown solutions for community problems and a Jana Sabha a grassroot level body for rural sector also known as village government.

Another salient feature of the new national policy would be 'micro-centres of growth' on modern lines and make them part of the system of representative government.

The Ministry invites public views on the draft and the public could get in touch with the Ministry over 2395326-7, fax: 2347529 or e-mail [email protected]

1. THE PREAMBLE

Local governments are commonly accepted levels of democratic governance which has been actively engaged in local development activities in our country, since historical times. It provides basic services and development to citizens in the areas under its jurisdiction.

Local Government and Provincial Council Minister Janaka Bandara Thennakoon

Creating a new vision for local governance is a need of the hour to overcome the challenges and fulfill the service requirements of the people and the local development needs. In order to revisit the national development objectives afresh and to pursue new goals and targets of national development for upgrading the system of local government, and also considering the enormous service responsibilities that could be delivered by the local governments, the Ministry of Local Government and Provincial Councils hereby submits the National Policy on Local Government.

The fundamental principle of the policy is to "strengthen and broaden the democratic structure of government and the democratic rights of the People by decentralizing the administration and by affording all possible opportunities to the People to participate at every level in national life and in government" 1 as spelt out by The Constitution of the Democratic Socialist Republic of Sri Lanka.

1.1 The expectation It is peoples' desire for all local units of human habitat to 'emerge as micro-centres of growth on modern lines'. The expectation of this policy is to establish an efficient, effective and people's friendly local governance in Sri Lanka through the active participation of all civil society partners, community organizations and promoting a grass root level governing organization of 'Jana Sabha' for a prosperous village government. Likewise the end result will be further empowerment of the general public through advocating a peoples' friendly governing environment and enhancing the participatory democracy by implementing the required short term and medium term reforms.

1.2 The changes of 'local governance' As the overall medium-term objective of this Policy is to make local authorities an integral part of the system of representative government with the highest permissible level of democratic decentralization and autonomy, backed by corresponding powers and resources.

Towards this overall goal, immediate measures will be taken to build local government capacity to gradually assume the new decentralized role with confidence.

The capacity will be built through collective vision, participatory governance, rational review of powers and functions, allied legal and statutory reforms and also the development of necessary infrastructure and human resources. These are essential prerequisites for strengthening optimum devolution, decentralization and autonomy.

2. THE RATIONALE

2.1 The National Policy on local government is being introduced for the promotion and strengthening of local democratic governance based on the following principles.

2.1.1 Noting that local, provincial and national development are integral and interlinked, 2.1.2 The local government sector should maintain strong inter-linkages between and among other existing national, provincial and local governments and administrative structures.

2.1.3 More effective inter-relationship should exist between urban and rural economies.

2.1.4 The public participation and social awareness are essential main tools to achieve the highest expectations of the decentralization.

2.1.5 Every citizen has the right to demand optimal basic services, facilities and infrastructure from the local government and other government departments and authorities. 2.1.6 That it is the moral and legal responsibility of the local authorities to deliver a reasonable service for the every citizen as enshrined in the Local Government Citizens' Charters.

2.1.7 Such rights are accompanied by duties and responsibilities of the citizens, particularly to participate in and contribute to local planning and development.

2.1.8 In local governance there are some social civil responsibilities and duties that should be performed by the citizen.

2.1.9 For more than hundred years, the local authorities in Sri Lanka have shown unwavering commitment to public well-being manifested through many constructive actions, despite their inherent resource limitations and other impediments.

3. THE AIM

The aim of the Policy is to establish the necessary institutional and legal framework and build a supportive environment backed by adequate safeguards and guarantees for achieving the highest feasible level of effective local self-government as an integral part of a three-tier representative governance, by: 3.1 Broadening the scope of local government with adequate functions, powers and resources.

3.2 Raising the consciousness, vision, commitment, planning and managerial capabilities of local authorities and of their civil society partners, 3.3 Building the capacity of local authorities to fully exercise the powers assigned to them to harness local strengths and resources. 3.4 Mobilize stakeholder participation and support for physical and socio-economic development of their area of jurisdiction, within their own distinct cultural setting. 3.5 Making local governments more effective, people-friendly and equity-building institutions of democratic governance.

4. THE POLICY FRAMEWORK

The Policy will introduce practical home-grown solutions to address the deficiencies and impediments in local government. It shall ensure that the necessary legal and institutional mechanisms, instruments and tools are in place to usher in an era of effective local self-government, by implementing a multi-pronged strategy that will ensure social harmony, cohesion and ethnic integrity.

Goals and Priorities: 4.1 Optimum Divisional Decentralization and Devolution : 4.1.1 Encouragement of Peoples' Governance :4.1.1.1The Policy seeks maximum devolution and decentralization of authority and powers for participatory decision-making in a manner that respects and upholds the principles of autonomy, subsidiarity and proximity in order to empower local authorities to regulate and manage the share of public affairs under their purview.

4.1.1.2 As a medium-term goal, the local government will be accorded the status of an integral part of a three-tier representative government within the ambit of the Constitution of the Republic of Sri Lanka. Local authorities will thus be transformed from the status of 'dependent institutions' to 'self-governing partners' of the other two tiers of government. The main objective is to help them achieve participatory local self-government and empowerment of 'Gamey Anduwa' or, in other words 'Jana Sabha' which has been born through the existing State Policy followed by the home grown self-governing concept of 'Grama Rajjya' that has a long history.

4.1.1.3 The policy expects that the local authorities be consulted whenever the related policies are being prepared by considering the fact that the local authorities are independent and autonomous unit of governments.

4.1.2 Primacy of local government jurisdiction:

4.1.2.1 The Policy shall devise necessary institutional mechanisms and legislative enactments and cause to implement the already available statutory safeguards diligently to effectively insulate the local authorities as the premier governance institution of the area, devoid of any interference from extraneous interest groups and by strengthening the image of local authorities and also safeguarding their powers as stipulated in Section 4.3 of the 13th Amendment to the Constitution of Sri Lanka which states that " it will be open to a Provincial Council to confer additional powers on local authorities but not to take away their powers." 4.1.2.2 Overall allocation of any local government function or responsibility to any authority or entity other than the local authority will be done purely and only for reasons of technical or economic efficiency and, necessarily, with wider consultation with and agreement of the related local authorities, other appropriate institutions and expert bodies representing the local government sphere of the country.

4.1.2.3 The Policy, therefore, shall call for more profound intra-governmental and inter- governmental consultation, solidarity and collaboration to enhance local autonomy, stakeholder participation and partnership-building.

Through a consultative process involving all relevant ministries, necessary guidelines shall be issued clarifying the inter-agency and inter-governmental(tier) functions and issues and defining their relations. 4.1.2.4 The local authority shall be given full discretion and assistance to exercise their authority in regard to planning, administrative, fiscal and financial matters concerning their jurisdiction. 4.1.3 Rationalization of the institutional scope and capacity of Local Authorities:

4.1.3.1 The Policy seeks to expand the scope of local authorities from being an agency for public amenities maintenance to be the flagship for goal-oriented local development that contributes to equity, national growth and equitable economic progress. For this, the scope of local government will be widened. The inadequacy of laws and by-laws to deal with the new and emerging functions and subjects will be addressed as an urgent responsibility. The procedures of enacting statutes and by-laws by provincial councils and local authorities will be simplified. 4.1.3.2 Immediate support and expertise will be rendered to reorganize and reinforce the local government administration system. 4.1.3.3 Reintroduction of ward representation system and establishment of ward level 'Jana Sabha' will be considered within the scope of the national framework of representative governance. The 'Jana Sabha' will be actively involved in planning and monitoring of service delivery and of physical and socio-economic development within the area. 4.1.4 Local Government as the Planning Authority: 4.1.4.1 The Policy, ensures the partnership of the local authority in divisional development planning and create a common environment for well-coordinated integrated rural and divisional planning. 4.1.4.2 The Policy also will pay special attention to bring the Divisional Administration and the local authority to a common platform of planning and coordination by developing appropriate institutional space and mechanisms for harmonious co-existence between the two. The policy envisages that all major partners in local development will integrate their activities in a coherent manner under the coordination of the local authority.

4.1.4.3 The Policy will ensure proper implementation of the National Physical Planning Law under which the local authority is given the status of the planning authority of the area under its jurisdiction. The scope of local authority will be expanded to enable it assume the role of planning authority for both physical planning as well as equitable human development of the assigned area. 4.1.4.4 Steps will also be taken to ensure that the major local development initiatives in urban areas are also linked directly to, and coordinated by the local authorities deriving strength and support from the Urban Development Authority Act and the Urban settlement Development Authority Act.

4.1.4.5 In keeping with the government vision 'to recognize local governments as autonomous bodies, accountable to their people and strengthen them by giving adequate manpower, financial and decision-making powers'2, the Policy will also ensure that all investments in local development will be linked to local government.

The purpose is to achieve a holistic and integrated development planning process, based on the principle of subsidiarity. 4.1.4.6 Under this policy, local government shall assume a new meaning as an amalgam of all the area-based development activities conducted by the Development Triad, i.e., the Government, the Civil Society and the Private Sector, assisted by international development agencies. The Policy shall promote, encourage and support partnerships among the Triad constituents. Local government planning shall be considered an integral part of provincial and national planning system and process. 4.1.4.7 To ensure strict adherence to the above, 'a set of guidelines for socio-economic development planning' at the local level will be stipulated through a process of inter-ministry consultation. This will supplement the existing guidelines for physical planning and urban development planning.

4.1.4.8 The Policy considers preservation and improvement of physical environment of the area of jurisdiction is the responsibility of the local government authority and thus, environment parameters should receive highest consideration in local planning. 4.1.4.9 The Policy shall also ensure that, as the planning authority of the area of jurisdiction, local authorities will be pro-actively involved in disaster prevention, mitigation and management within the overall district framework for disaster management. In collaboration with the related ministries and respective technical authorities, every local authority will receive technical guidance and assistance to identify potential disaster-threats and disaster prone areas and to formulate a comprehensive, area-specific, local strategies and plan with rapid response systems for disaster mitigation and management, for proactive execution and regular updating.

4.1.4.10 The policy will encourage collective enterprise particularly of geographically contiguous local authorities and others that share common problems and opportunities, for economical and effective management of issues such as transport, solid waste, social forestry and watershed conservation. 4.2Representative Democracy and Consensus Politics 4.2.1Strategic vision and Consensus politics: 4.2.1.1 The Policy envisages effective implementation of all statutory provisions that help building consensus in local governance. 4.2.1.2 To ensure sustainability of participatory local planning strategies and to prevent them from being abandoned in midstream when regime-changes occur, the Policy will entrust local authorities with the onerous task of formulating and implementing a perspective corporate plan with a well articulated vision and strategy for long term development.

Necessarily, each local authority shall ensure that the said corporate plan will represent the consensus view of all the major parties of its Council and is duly validated through an effective citizen consultation process. The Policy will also emphasize the need for regular progress reviews with all-party involvement. 4.2.1.3 The Policy shall work towards creating an enabling environment by promoting a local culture of non-confrontational politics through refinement of participatory planning mechanisms and consensual decision making processes at the local level. It also will encourage civil society partners to undertake locally tailored programmes to raise the level of civic consciousness in this regard.

4.2.1.4 4.2.2 Rule of Law: 4.2.2.1 The Policy will encourage local authority participation in developing practical means and mechanisms to uphold and ensure the rule of law, irrespective of social distinctions, within the respective area of authority. This will be done using proper communication methods, coordination mechanisms and partnerships with law enforcing and regulating authorities and with fullest participation and contribution from the civil society. 4.2.2.2 Avenues will also be explored to develop appropriate consensus mechanisms such as a 'Law and Order Advisory Committee' co-chaired by the Head of Local Authority and the chief of Police of the area along with civil society and private sector representatives in order to hold the elected Heads of local authorities too co-responsible with the Police for maintenance of law and order within the area of local authority . 4.3Transparency, Accountability and Responsiveness 4.3.1Transparency and accountability: 4.3.1.1 The Policy will insist on achieving the highest possible level of local government transparency and effectiveness. Public accountability will be an integral element of the Policy. It will uphold and protect the citizens' right to information and will make the operations of the local authorities transparent, particularly in matters relating to revenue and expenditure, procurement and tender awards, staff selection and promotion, identification and prioritization of development projects and sharing of information.

It will help eradicate alleged speculation, suspicion, malpractices, corruption and other such complaints. Regular public consultations and periodical feedback systems on financial and other important issues will be encouraged to enhance accountability. 4.3.1.2 Thus, the Policy will insist on strategic medium term vision-building, participatory planning and budgeting, transparent procurement procedures, enhanced unhindered public access to budgets and audit reports and statutory public display of justification of tender awards. 4.3.1.3 It will also call for immediate establishment of a well publicized public complaints procedure, an office of ombudsman, and social audit mechanism such as introduction of citizens' report cards, for periodic public assessment of governance at the local level. 4.3.1.4 4.3.2 Responsiveness: 4.3.2.1 The Policy shall uphold responsive governance and encourage, guide and support the Provincial Governments in building the local government consciousness and capacity to ensure that local authorities are constantly responsive to local aspirations and addressing the pressing needs of the residents in a spirit of conformity. Toward achieving this objective, the Policy will make sure that peoples' aspirations and needs receive unreserved attention and unhampered priority at all stages of development planning and budgeting.

4.3.3 Access to information: 4.3.4 4.3.4.1 Local authorities regularly generate a large fund of valuable data. They lie in files and are difficult to retrieve and use at short notice. The Local Government Policy will encourage and ensure that all the Municipalities, the Urban Councils and large Pradeshiya Sabhas will install and continually update and upgrade the required level of facility to operate Information Management Systems and other accessories such as own website and stakeholder inventories, in order to collate and store the said data for easy retrieval, effective planning and indicator-based performance review. 4.4Equity Promotion and Poverty Reduction 4.4.1Equity in resource distribution, Localizing development goals and Povertyreduction: 4.4.1.1 The Policy views development goals as a veritable vehicle for disparity reduction and equity promotion. It will work closely with the Treasury and the National Finance Commission to help achieve equity in the distribution of public finance among the local authorities.

Similarly, it will ensure equitable distribution of local government resources among the resident populations to remove any existing service and infrastructural disparities within their area of jurisdiction.

As a medium term measure, local authorities will be encouraged and supported to localize and diligently pursue the development goals and targets. Local authorities will be trained and helped to compile status reports on development goals, to identify service and achievement gaps in the local area and to formulate and implement a plan of action for removal of such gaps in collaboration with all appropriate agencies. 4.4.1.2 The Policy also will provide for regular all-party Parliamentary and Provincial Councils review of progress made by local authorities and the provincial governments in narrowing the regional and intra-regional disparities in development. 4.4.1.3 According to the existing state policy, the local authorities will focus on greater planning emphasis on resources for removing intra and inter-area disparities and correct the existing imbalances in regional growth. It will also be requested, guided and supported to develop and implement area-based plans for human development with concerted emphasis on poverty reduction.

4.4.2 Gender empowerment and Marginalized Groups: 4.4.2.1 The policy will take measures to increase participation of women and of marginalized groups in decision making processes of local authorities. 4.4.2.2 The local authorities shall also take measures to create appropriate procedures and mechanisms to bring representation of women and marginalized groups in to the local level decision-making process. To be continued