Governance

1.1 A long-standing concern, but one thwarted by the events: The determination to reform public institutions, and especially the administration, is nothing new in Mali. Ever since its independence in 1960, Mali has constantly striven to obtain the tools of good governance. On the one hand, there was the desire to break with the system of colonial administration based primarily on domination through the use of coercion and, on the other hand, there was the concern to ensure better management of the country, which at the time was poorly covered by the administration and faced a shortage of human resources. These concerns, which were accentuated buy a leftist ideology, led to centralization in spite of the objective of decentralization embodied in the Constitution. Since that time decentralization has been a fixture in Mali's different constitutions, although it was never really put into practice.

A major overhaul of the territorial administration was carried out in 1977 with the primary objective of bringing government closer to the governed through revolution and greater participation of the people in setting development priorities within the framework of district councils composed of non-elected representatives. Moreover, a special tax, called the "regional and local development tax" (TDRL) was established to finance projects and programmes initiated by the population. But all these actions undertaken up until that time, although they helped to improve somewhat the functioning of the administration, failed to produce results on the scale hoped for. This was due primarily to political environment characterized by a monolith that was not conducive to institutional reform. Such reform requires discussion between opposing views and the full participation of all stakeholder, things which are difficult under a monolithic system.

1.2 A favourable context: A development management style that allowed for a very little participation, the result of a strong centralizing tendency of the political and administrative system, engendered various kinds of frustration. This frustration gave rise to social unrest which culminated in armed rebellion in the northern part of the country and political demonstrations in the southern part. These were the factors that triggered the democratization process which is now under way in the country and which is fostered by the present international climate. Since March 1991 the context has changed radically. With political pluralism becoming a reality, there was a need for a different way of organizing the State and its chief instrument of action, namely, the civil service and its management. If the organization of the machinery of State at the highest level can be considered to have been achieved with the establishment of virtually all the republican institutions provided for in the Constitution, the reform of the administrative apparatus has yet to be carried out. This reform of the administration hinges on decentralization, the aim of which is to deepen the democratic process:

- by giving the inhabitants responsibility for making decisions that affect their own lives through freely elected representatives and by providing suitable for this purpose;

- by adapting the role and the organization of the State to the objectives and requirements created by the emergency of a grass-roots democracy and a new framework for promoting development on the basis of the concerns and the know-how of the people concerned.

The decentralization programme, which should allow for democracy in everyday life and at the level closest to the inhabitants, thus constitutes a frame of reference for all the institutional reforms on whose implementation the future of the democratic process in Mali depends. Mali has embarked upon a bold process of decentralization for which the essential legal provisions are not fail to meet. All other public policies must serve to advance decentralization or must in every case take it into account in their formulation or implementation.

Decentralization flows from the unswerving political commitment of the authorities of the Third Republic. The preparations for decentralization are the responsibility of a national structures staffed by national professionals and benefiting from both technical and financial support from the country's development partners. The combination of all these efforts should make it possible today to establish through the national territory the organs for free administration by the people in the course of 1997.

This form of administrative organization displays some similarities with forms of organization which existed in the kingdoms and empires that succeeded one another in Mali's territory before the colonial era. Indeed several researchers have confirmed that these kingdoms and empires were in reality made up of several entities which enjoyed genuine administrative payment of taxes and the provision of soldiers in time of war. Since the colonization, however, the unitary, centralizing State has continually strengthened itself Mali in spite of the wishes of the 13 communes established by the colonial power and the first two regimes since independence. It has resulted in the disappearance in practice of all decision-making centers other than the State and subsequently in a withdrawal from involvement on the part of the citizens and their magrinalization. The break with the State that ensued seriously undermined the State's credibility and legitimacy and, ink the end, resulted in the popular uprising of March 1991 and the demise of the regime.

In spite of this cultural sub-stratum, decentralization in Mali cannot be a matter of simply reverting to forms of administrative organization which predate the colonization. Conditions are very much different today. In Malian society today, decentralization entails certain major stakes relative to be main challenges currently facing Malian society.

Development stakes: In order to grow stronger and be sustainable, decentralization must be translated in the near term into an improvement in the daily lives of the citizens. This is a the principal challenge of decentralization, indeed of democracy in Mali has chosen to make the key institution, in which representatives are now to be elected, the commune, which is closest to the grass roots, and has identified as the chief areas to be targeted the locally-based services that reach the greatest number of people, namely, basic education, primary health care, village water supply and hygiene. The priority objective is to increase the quantity and quality of these services, by making the people responsible for their provision and management and by mobilizing the maximum resources for this purpose.

- Political stakes: The question here is primarily whether decentralization will deal a dangerous blow to national unity. Indeed, given the context of ethnic pluralism, the question often arises as to whether decentralization will not become a factor for reviving feelings of separate identities. On the contrary, Mali's aim is to make that differences that are recognized, accepted and properly handled are factors promoting cohesion. In this regard, decentralization was to be put to the test before it was pursued on a nationwide basis.k One of the distinctive features of the situation in Mali is the fact that decentralization has emerged ink the context of a rebellion in the northern part of the country with its frequent calls for session. Decentralization has appeared to be the appropriate political response to this phenomenon.

It was very quickly realized that the rebellion was a war for better government which could engulf the entire country if nothing was done. The prohibitive cost of the conflict for a country which was facing enormous economic and financial difficulties led the authorities to enter into negotiations with the rebels and to put forward a proposal for territorial decentralization that marked a definite break with past approaches. In the course of the negotiations, the leaders of the rebellion obtained the agreement of the Government for the principle of a special interim treatment of their regions pending the practical implementation of the promises of the Government, whose credibility they doubted. These principles were embodied in the "National Covenant", which was signed on 11 April 1992 between the Government and the armed movements in the north.

The instruments of interim administration which the Covenant established in that part of the country anticipated decentralization. In institutional terms, the Covenant sets up in the various grass-roots areas, the districts (arrondissments), a Transitional District Committee [Comité transitoire d'arrondissement (CTA)], which involves the population in local management through their community leaders. In the economic sphere, a special development programme for the Timbouctou, Gao and Kidal areas has been under way since 1995 and a special programme has been undertaken to support the process of demobilization and social and economic rehabilitation of the ex-combatants. In the context of efforts to mend a social fabric damaged by the rebellion, decentralization offers the opportunity for greater participation by citizens in the democratic process and for the recognition of specific local conditions within the unitary State. It also offers the possibility of organizing solidarity through specific arrangements in support of the least developed parts of the country. This represents a major improvement over the past in that it has shown how disputes within society can be managed. Above and beyond the political and development stakes involved, decentralization in Mali has also been prompted by a logic of peace. With the implementation of the decentralization, the problem of the north's special status, which is the primary focus of the National Covenant, has been settled (see annex on decentralization and the settlement of the conflict in northern Mali). The Covenant envisages an administrative arrangement in which the inhabitant are represented, as in the case at the existing CTAs. Decentralization provides for a system of direct administration by the people concerned and and equalization fund which takes into account the specific conditions of the different regions.

The National Conference, which was the starting-points of democratic Mali, had recommended the elimination of all obstacles to the pursuit of genuine decentralization. This position was incorporated in the provisions of the Constitution, article 70 of which provides that the law shall determine the fundamental principles of free administration by local government bodies and shall specify their powers and resources. It also maintains in existence from among governments since the National Conferences have made this issue one of their priorities and have established special structures to handle it.

- During the Transition (1991/92), there was a Ministry responsible for institutional reforms and decentralization;

- With the advent of the Third Republic (beginning on 8 June 1992), a Decentralization Mission was established. The chief innovation of the Mission was that it was time-limited and had a well-defined mandate, which was to assist the Prime Minister in defining and coordinating government policy regarding decentralization by determining the conditions for the establishment of local government bodies, reorganization of government districts, etc..

As a reform of society, decentralization provides for the involvement of all political, economic and social stakeholder, in particular the administrations whose roles and powers are to be altered. Bearing in mind this complexity, the decentralization Mission has based its entire strategy on two key elements: participation and gradualism.

- Participation: Decentralization cannot be achieved unless all the parties affected by it have a role in its implementation. Consequently, the participation on which all the activities of the Decentralization Mission are based has sought to involve as many stakeholdrs as possible in the process in order to make decentralization a social project whose content is under the control of Malians, inasmuch as it is determined by them. To that end, an intensive communication campaign was carried out through the Regional Study and Mobilization Groups (GREMs), which are genuine forums for information and mobilization that are open to everyone. The GREMs have allowed for participation by the population in determining the content and the pace of decentralization in Mali. The political parties and organization of other kinds were also affected by this participation, since all draft decisions were communicated to them for comment and briefings were organized for them on a regular basis. In addition, all the parties were involved in the GREM process through their local structures. The activities of these consultation networks at the grass-roots level were extended and reinforced by the various media (radio stations, television, written press), as well as by traditional networks at the local level. Also occurring within the framework of this participatory process were the restitutions and reports of the final results of the redistricting by the Decentralization Mission at the regional level and by the GREMs at the local level, culminating ink the promulgation in 1996 of Act No. 96-059 on the creation of the communes.

- Gradualism: Above and beyond the consensus which exists among all the stakeholder as to substantive content -- a consensus that was expressed on several occasions (national conference, programmes of the different political players during the different elections campaigns) -- the question of the pace of implementation has always been a major concern as regards decentralization in Mali. The concern to devise a programme that the stakeholder could control dictated a gradual approach to decentralization in accordance with the legal requirements, which provide for the equality of everyone before the law. Accordingly, while decentralization has been made a right for every party in Mali (hence free administration for all), gradualism has been adopted a regards substantive content. Thus the powers developing to the communes will be transferred to them according to their ability to shoulder them effectively. The powers developing upon the other levels (circle and region) are to be specified at a later stage.

(a) The creation of the minimum conditions necessary for the introduction of such a reform, which comprise the legislative and regulatory provisions, prior training of the stakeholder, steps to ensure the viability of the existing communes so they can serve as positive examples, the preparation of appropriate tools for use by the State in the kind of development management which decentralization entails, involving a multiplicity of players and administrative subdivisions. This instrument is the national development plan, together with the regional development plans. These embody the main strategies for Stat intervention in a decentralized framework. They were worked out during the period 1995-1996 on the basis of consultations carried out at the local, regional and national levels.

(b) Training This is absolutely essential if decentralization is to work. Accordingly the Decentralization Mission has developed an ambitious training strategy and established for its implementation a nucleus of trainers comprising specialists in training from both the private and the public sector. The training provided since 1995 has involved the staff and management of devolved State services with a view to preparing them for the changes that decentralization will entail for them, and local stakeholder in the development process in order to get them to adjust their activities to take into account the introduction of the new administrative set-up based on the commune.

(c) The legal framework consists of the entire body of laws and regulations already in existence. It includes the Code of Local Government Bodies and laws on taxation by the communes, on the status ok the personnel employed by the communes and of the State representative to the communes, and on the property of the local government bodies.

(d) Creation of public awareness Decentralization is without a doubt the reform that has been most widely discussed in Mali. This discussion has taken place throughout the country in various forms (magazine articles, meetings, workshops, articles in the press(both public and private, written and broadcast).

(e) Reorganization of the national territory into communes: The fundamental objective was to arrive at the emergence of communes on the basis of proposals by the populations concerned. To this end, inter-village consultations were organized throughout the country over a two-year period (1995-1996). The consultations resulted in proposals for redistricting the country into communes through which groups of villages would manage their affairs. They led to a proposal for the creation of 682 new communes. This has been reflected in Act 96-59 on the creation of communes.

(a) The preparation of this reform has mobilized substantial human, material and financial resources. The State has made a considerable effort in relating to its means.j But this effort is still modest compared with the resources which the reform requires. Essential contributions have been provided by Mali's development partners (Germany, Canada, United States, France, Netherlands, UNDP, Switzerland, European Union), totaling some 3 billion CFA francs. Coordination of the activities of these partners in the context of the decentralization occurs during the periodic consultations which are field to take stock of the progress made and assess the requirements for assistance.

(b) Implementation of the reform still requires additional resources, in particular for the future communes. With this in mind, Mali has adopted a number of principles governing decentralization which are conducive to maximizing the resources to be made available to the communes, namely:

(i) The simultaneous transfer of functions and resources: This means that when the State transfers to the communes the functions that are to be theirs it will also transfer to them the resources currently allocated for the main sectoral study on the impact of decentralization on the public finances.

(ii) The transfer of some of the State's tax revenues to the communes. In this connection, license fees, fees charged for two-wheel vehicles and almost all of the slump-sum assessments on income have been transferred to the communes. In addition, the law recognizes the special taxing powers of the communes enabling them to raise revenue from strictly local levies, such as fees for boats and small craft, road-use fees, and entertainment taxes.

(iii) The State is endeavoring to channel certain external financing toward the development of the communes. A case in point is the Urban Development and Decentralization Programme (approximately 80 mission US dollars), which, with funding from the World Bank and several other partners, is mainly concerned with communes that are capitals of their regions. This is also true of:

- The European Union, which will allocate 20 per cent of the seventh EDF for funding of investment in the communes, or around 24 billion CFA francs over five years.

- Canadian cooperation, which provides financing for a communal investment fund open to the communes in the northern part of the country (Mopti, Gao, Timbouctou and Kidal);

- Dutch cooperation with the development programme for communes in the Ménaka and Diola circles, in the amount of 4.5 billion over five years;

- Swill cooperation with the local development programme for communes in the Bougounim Lolondiéba and Yanfolia circles, amounting to about 500 million CFA francs over four years.

Decentralization is, of course, the main theme of good governance in Mali. Indeed, it is the necessary point of departure. But it will not really work unless certain conditions are met:

3.1 A larger role for civil society. Elections constitute the minimum requirement of local life, but they are not enough to give citizens the feeling that they have a say in decision-making, that they matter in the actions taken by the administration, which is something that is nevertheless essential for the success of decentralization and good governance. This requirement suggests the participatory democracy, to recognize the increased role of civil society and to give civil society mandatory for elected officials to consult with community leaders on certain important local decisions (programme, budget, settlement of disputes over land, arbitration in matters not settled by modern written law, such s inheritances). In addition, meetings are open the public and decisions are published.

3.2 Devolution This is a sine qua non for genuine decentralization. In order to be able to make decisions and act quickly in response to the specific situations that they face, local government bodies need to have counterparts in the central government at their level who are in a position to take decisions without having to refer matters to the central authorities and without being hamstrung by paralyzing directives. If negotiation with the State should prove to be necessary it should be possible to conduct it on the spot.

All these questions affecting the reorganization of the State as a result of decentralization are covered in the institution-building programme that is under preparation. The aim of the programme is to make the State able to handle its functions better in a context of a multiplicity of stakeholder, whether they are local government bodies or from the private sector. If the State is to be better able to manage the changes that are under way, it needs to be strengthened in the area of some key functions which transcend all others, whether involving sovereignty or the provision of services. That is why in terms of priorities the institution-building programme is focused on four main functions, with the aim of enhancing the functioning of the machinery of State, functions whose effective performance can produce a bandwagon effect. These are:

(i) and (ii) The functions of resource management and allocation, involving both human and financial resources. These function have become priorities, especially in the context of scarce resources, a scarcity that will remain a given in Mali for some time to come. Moreover, the main, indeed the only, resource which the public administration has at its disposal is its human resources, the better management of which has an influence on all the other actions. In Mali these human resources have a fundamental impact on the State's financial resources, since they account for half the State budget. Hence the relevance of dealing simultaneously with these concerns in order to take into account their reciprocal impact.

(iii) The function of administration and justice: Although there is no apparent connection between this and the two functions referred to above, the relevance of administration and justice must be sought in the context of the rule of law that has characterized Mali since 1991. Indeed, the rule of law is being build on solid justice that is accepted by the various social stakeholder. The problem as it is posed here goes beyond the justice of the judicial system or formal justice; it invites an examination of the place which properly applied customary law should have in Mali's account traditional ways of handling conflicts and settling disputes. Coverage of the national new legal entities to which the court system must draw closer if it is to be effective. In addition, accessible to the majority of the population, which is barely literate. In such conditions, the traditional channels and rules for settling conflicts and disputes continue to play an important role in Malian society. Lastly, certain procedures for the non-judicial settlement of disputes or conflict-prevention, in particular with the administration serving as Mediator, are envisaged for the better regulating of society.

(iv) Information and communication: Information, be it technical, economic or social, has an operational and economic value that is very poorly understood by decision-makers. Mastery of information is essential for efficient management. Communication or the ability to explain what one is doing and to elicit the views of the various partners is essential. It makes it possible to enure that change is visible and understandable to users, whose support is crucial to the sustainablility of proposed actions. Communication must go hand in hand with every reform activity. Experience shows that the poor communication is one ok the greatest failings of policies. A well-designed communications strategy should therefore underpin the entire process of the institution-building programme, whether at the preparation of the implementation stage.

The institution-building programme is being prepared by a technical committee which reports to the prime Minister; the committee is chaired by the head of the Decentralization Mission and has as its members representatives of the Decentralization Mission, the Secretariat of the Office of the Cabinet, the Ministry of Finance,the Office of the Commissioner for Administrative Reform, the Support Unit for Budgetary Reform, the carried out in connecting with the preparation of this programme are:

- the conduct of three pilot activities for streamlining administrative procedures and formalities.

These have been determined by the main constraints facing the implementation of the planned institutional reforms, especially decentralization. These constraints relate to the skills of the major stakeholder in the reform, namely, the communes, their financial means and their capacity for local coordination.

4.1 Establishment of the High Council of Local Government Bodies (CAFAF 250,million,j in addition to appropriations included in the State budget):

This institution is provided for in the Constitution and is made up of representatives of the local government bodies. It is the interlocutor of the Government as regards all matters affecting the communes. The planned amount will finance some of the equipment, machines and office supplies, and the services of experts and consultants necessary for the satisfactory completion of the mission of this important body.

4.2 Strengthening the capacity of the communes to provide basic services (primary education, community health care, village water supply) to their populations CFTAF 3.5 billion, or 5 million for each commune) to support the communes in building basic infrastructure, for which they are responsible under the basic provisions on decentralization.

- Training (estimated cost CFAF 900 million, including 600 mission for training of elected officials) Up until the present time the essential human resources of the existing 19 communes have been provided by the State in the form of subsidies. The operation of 701 communes (19 existing communes and 682 new ones) will necessitate acquisition by the communes of the human resources that are not available from the State. It should be pointed out that, since the State in Mali is itself going through a structural adjustment, it is experiencing difficulties kin meeting the human resources needs of its own services. Although it is not appropriate in such cases to resort to contributions from external sources to cover the salaries of the officials to be recruited, the training which will be needed to impart the skills that will be needed by the staff of the communes will exceed the human and financial capacities of the communes and the malian State. The national arrangement currently planned calls for a transfer of resources whenever the State transfers responsibilities. It is clearly inadequate to deal with the problems of the communes. The Decentralization Mission has developed an ambitious training strategy and established for its implementation a nucleus of trainers comprising specialists in training from both the private and the public sector. The training provided so far has involved the staff of the local government bodies with a view to preparing them for the changes that decentralization will entail for them, and local stakeholder in the development process in order to get them to adjust their activities to take into account the introduction of the new administrative set-up based in the commune.

The election of communal councilors will create an immediate need for training in all aspects of the management of communes. This need will be especially pressing for those entrusted with the everyday management of the communes, such as mayors, deputy mayors, the general secretaries and heads of communal services.

In addition, State officials will have changed functions in that instead of engaging in direct management as ink the past they will assume the function of assisting and advising elected officials. This implies new knowledge that will have to be acquired.

- Raising the financial resources (CFAF 2 billion): Elected officials in mali have a bad reputation as regards their capacity to raise local resources. Local development, which is the fundamental reason for the policy of decentralization, will not compromise with that reputation. These officials must therefore carry out studies to identify all local income-producing capacity and devise appropriate measures for taxation; this will require expertise that is not available at all levels. The planned activities at this level are of two kinds:

* the establishment of a research fund to assist local elected officials and the local tax authorities in identifying sources of revenue and improving the planning of communal development (CTAF 500 billion);

* construction and equipping of units for assessing and collecting communal taxes and fees (CFAF 1.5 billion).

- Construction of revenue-producing infrastructure (markets, bus stations, slaughterhouses. etc.) (CFAF 5 billion): One of the causes of the poverty of the communes in Mali is their lack of revenue-producing infrastructure. This is the basic reason why they regularly have to sell off land in order to meet their overhead costs. With the aim of preventing this phenomenon from becoming widespread, which could result before very long ink the mortgaging of all the land assets of the nations, it will be necessary to build infrastructure which neither the State nor the communes can afford in the immediate or medium term.

- Bringing justice closer to the people (CFAF 500 million): Decentralization will create 682 new legal entities in Mali, namely, the new communes. However, Mali has only three administrative courts, which will be responsible for resolving the conflicts which may arise between elected officials and the supervision authorities, on the one hand, and between elected officials and those governed by them, on the other. The devolution of Mali's judicial machinery is a basic condition for the success of decentralizaon. Initially, this will entail the establishment of one administrative court for each region, and at a later stage one administrative court for each circle.

The immediate needs in the area of strengthening the rule of law in the context of decentralization will relate to:

spreading information about the law and conducting training/awareness campaigns to make citizens aware of their rights and duties vis-a-vis the commune and the State;

the provision of training and civics education to members of vulnerable groups (young people, women).

- Establishment of a Mediator (legislation on whose creation has just been promulgated). The Mediator's role is to ensure better protection for citizens against the State and its subdivisions and thereby to contribute to better governance. (CFAF 100 million for office equipment and supplies and the conduct of studies and research necessary for the performance of the mediator's takes).

4.6 Development of the capacities of civil society (social and professional organizations, community leaders) (CFAF 100 million): These organizations having legal personality have demonstrated their capacity for social management in the conflicts in the North and the schools State Administration for the activities of informing, communicating and training provided that they are given the appropriate skills in these different areas. This amount will be earmarked for support of community and professional organizations for priorities which they themselves have set through their representative bodies.

AREAS	ESTIMATED AMOUNT FOR NEXT THREE YEARS
Establishment of the High Council of Local Government Bodies	250
Training of municipal councilors	600
Other training	300
Research fund for communes	500
Construction and equipping of tax assessment and collection units	1500
Construction of basic-services infrastructure	3500
Construction of income-producing infrastructure	5000
Strengthening the rule of law	500
Support for the Mediator	100
Development of the capacity of civil society and the local level	100
T O T A L	12350