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Stefan Leiderer et al. – Improved coordination between MoF and MEPD: Coordination between the Ministry of Finance (MoF) and the Ministry of Economic Planning and Development (MEPD), in particular with regard to ensuring the consistency of the Public Sector Investment Programme (PSIP) and the capital budget, is not always satisfactory. GoM should consider establishing a mechanism guaranteeing consistency of the first year of the PSIP and the capital budget. This seems to be a necessary precondition to increase transparency within the system, enforce the accountability of MoF and MEPD and to ensure that national investment projects are really selected according to national priorities as stated in the MPRSP. One necessary precondition for this is that sector ministries follow formal procedures and submit their project proposals exclusively to MEPD. – Better involvement of local stakeholders in the recruitment of District Secretariat staff to strengthen accountability between local entities: The recruitment process for key staff is still very long, unpredictable and centralised, above all for the local government level. In the medium term it may prove useful to increase the participation of local authorities in the selection of candidates for District Secretariats so that candidates feel more accountable to the local stakeholders. This could be achieved, for example, by changing the composition of the recruitment commission in the Ministry of Local Government and Rural Development (MoLGRD), giving more weight to local stakeholders such as the district commissioners and representatives of the District Executive Committee and District Assemblies. In the long run, the GoM could take into consideration whether responsibilities for the recruitment of local level staff should be transferred to the districts in order to reduce bureaucracy and increase the accountability of local civil servants to local government. – Performance-based resource allocation to local assemblies: Local assemblies which are more committed to own revenue generation should benefit from central government transfers, based on the “performance matrix”, created by the NLGFC. This benchmark tool can be used to strengthen the awareness and creativity among local assemblies to become more autonomous in financial matters. 12 German Development Institute
Public Financial Management for PRSP Implementation in Malawi – Donor support for capacity to generate revenue generation at local level: More attention needs be paid to revenue generating abilities of the state and the rural districts in particular. One possible option to broaden the local revenue base would be to assist districts with the costly and time consuming activity of valuing and rating areas to levy property tax. – Better alignment of donor support to DDPs: Donors financing projects at district level must make sure not to undermine local structures and procedures. In particular, local planning procedures have to be taken serious and as a rule only projects emerging from local District Development Plans should receive substantial donor support. – Consequent support to and use of the new Local Development Fund: Existing financing mechanisms to fund local development projects should be consolidated into the proposed Local Development Fund (LDF) with the objective to (i) (ii) (iii) (iv) Support planning and management of development resources at the assembly and community levels; Provide resources which ensure that development investment respond to the priority development needs; Facilitate the implementation of the National Decentralisation Policy; and Enhance the accountability of local authorities to their constituents. All donors supporting Malawi’s decentralisation policy should support the establishment and implementation of the LDF and align their activities and procedures accordingly. – Continued donor support to the NLGFC in order to ensure effective decentralisation: The NLGFC is an appropriate institution for supporting local government in financial management issues, capacity building and local development planning. The staff seems to be highly committed and adequately qualified. Therefore, donors should support the work of NLGFC in a coordinated manner with a German Development Institute 13
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Page 5 and 6: Studies Deutsches Institut für Ent
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Page 10 and 11: 4 The Case of Malawi 44 4.1 Why Mal
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Discussion Paper 16/2007 Schirm, St
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