USAID AND DEMOCRATIC DECENTRALIZATION

Responding to the opportunities and challenges created by the end of the Cold War, USAID has pioneered a new approach to building democracy in developing countries and countries of Eastern Europe and the former Soviet Union. This new approach, democratic decentralization, blends key elements of democratization, such as free and fair elections, with long-lived efforts to promote a more equitable and effective balance of power between central and local governments. The approach reflects Agency concerns that concentrating democracy-building efforts solely on the national level will lessen chances for sustained, country-wide democratic development.

Since 1990, USAID has launched more than 60 projects with a primary goal of facilitating democratic decentralization. The majority of these began between 1991 and 1995. By the end of 1997, the Agency provided support for democratic decentralization activities in more than half the countries with democracy and governance programming. That support is spread across the Agency’s four regional bureaus, includes small and large countries, and typically is closely coordinated with related efforts sponsored by the World Bank, European Union, United Nations Development Program, InterAmerican Development Bank, and other donors.

Building democracy through democratic decentralization has helped leaders and citizens make the transition from center-based, exclusive, and directive regimes to governments that are more pluralistic, inclusive, and representative. USAID democratic decentralization programming has provided vastly increased opportunities for citizens to be involved locally, where politics is more understandable, issues affect people more directly, and access to government is easier. At the same time, it has helped local political leaders and government officials become more effective, responsive, and accountable.

While USAID democratic decentralization efforts have generally had positive effects, there is a downside. Most countries where Agency democratic decentralization activities have taken place face at least three major obstacles: bureaucratic and political resistance, institutional and attitudinal vestiges, and lack of resources. Also, because democratic decentralization is a new area of programming, it is too early to gauge its long-term impact on either building sustainable democracies or development writ large.

Democratic decentralization holds considerable promise and appears well worth the effort. More specifically, USAID’s experience shows that such programming can help:

• disperse political power and authority more broadly and change the balance of power between the central government and local government units;
  
  
• narrow the distance between constituents and elected representatives;
  
  
• make local governments more open, responsive, and accountable, and increase their efficiency and effectiveness; and,
  
  
• increase political involvement of individuals and groups, and facilitate better public understanding of government’s role and responsibility.

In addition to promoting democratization and good governance, democratic decentralization can support sustainable development in other sectors by:

• encouraging countries to root outlooks and practices in local experience for sectors such as economic growth and health/population;
  
  
• providing mechanisms at the local level for resolving public—private differences; and,
  
  
• promoting more effective and responsive basic government services by locating the authority and responsibility for them closer to those who pay for and use them.