51404 No. 118 / February 2009 Political Analysis of Decentralization: Capturing the Stakeholder Perspective Lessons from the Bangladesh Study I. INTRODUCTION constraints and opportunities decentralization advocates face when pursuing reforms. This note The objective of this note is to provide guidance documents and draws lessons from an exercise in to World Bank task teams engaged in supporting assessing the political economy of decentralization reform on useful approaches to decentralization in Bangladesh which set out to understanding the broader political dynamics capture the diverse stakeholder perspectives, and which may affect their operations and dialogue. to understand and analyze their interests. This It does this by synthesizing lessons from an experience demonstrates that political analysis analysis of the political economy of can help to achieve several objectives which decentralization in Bangladesh, which was would support the effective design and execution carried out to support World Bank operational of decentralization policies and programs: engagement.1 · Identification of the political roadblocks to reform: the reasons for resistance and A. Why Political Analysis Matters For the Design of Decentralization Programs opposition, and the disincentives for support; Decentralization reform that strengthens local government has increasingly gained prominence · Identification of the political support for in recent decades, the underlying assumption reform: the rationale and motivation for being that local governance is a key element of support; building a robust and accountable democracy. · Increased information to help build However, despite the positive connotations effective and responsive reforms: associated with decentralization reform and the incorporation of local knowledge, local widespread support from policy makers, demands and local needs; international financial institutions, academics, · Setting up a transparent feedback and civil society advocacy groups, mechanism (before, during, and after decentralization and local governance reforms reform): allows for continuous are often derailed by the political resistance of identification and incorporation of key stakeholders. Therefore it is vital to stakeholder concerns with an aim to understand opposing views and the political ensure that reforms take them into account. 1 For details, refer to the study, Decentralization and Local Governance in Bangladesh: An Analysis of Stakeholder Perspectives, Social Development Department, The World Bank, November 2007. 1 B. Political Analysis of Decentralization effectiveness of Bangladesh's decentralization Reform: Learning from the Bangladesh reforms by (i) capturing and evaluating the Experience sources of political resistance and support to The World Bank is providing technical assistance reform, and (ii) contributing to dialogue amongst through the Local Governance Support Project both the detractors and supporters of the policy (LGSP) in Bangladesh. This program of lending change(s). and technical assistance supports an incremental process of strengthening local governance in C. Bangladesh: History and Politics of Bangladesh, starting with the lowest tier of rural Decentralization Reform local governance, the Union Parishad (UP). More Bangladesh has attempted to implement recently, the caretaker government has taken decentralization reforms to promote and initial steps to move forward with strengthening strengthen local governance on many occasions Upazila and urban local governments. However, over the past three decades (see Box 1). Reform there is limited examination of the politics of has, however, faced both open and tacit reforms at these levels. To fill this gap, the Social opposition. The first major initiative involved the Development Department (SDV) led a political reorganization of the local government system in analysis of stakeholder study, Decentralization and 1982 and lasted only eight years (1983-1991). Local Governance in Bangladesh: An Analysis of Since 1991, several attempts made to improve Stakeholder Perspectives, to contribute to local government in Bangladesh have Bangladesh's Local Governance Support Project. encountered political resistance from those vested The study captured the different stakeholder in maintaining the status quo and those perspectives on decentralization to acquire a questioning the assumption that decentralization better understanding of the political dynamics of reform is necessarily "good" and effective in the decentralization reform at the Upazila (UPZ) Bangladesh context. level in Bangladesh. The broader objective of this political analysis study was to improve the Box 1: Brief Background on Local Governance Reforms in Bangladesh At present, Bangladesh has a unitary form of government, and the central government deals directly with the local governments. The levels of local government link closely with the administrative tiers. For administrative purposes, the country is divided into 6 divisions, 64 districts, 481 Upazila (sub-district), and 4,498 unions. There are two types of local government institutions (LGI) at the rural and urban levels. Among elected LGI, there are 6 City Corporations and 307 Pourasabhas (municipality) in urban areas and 4498 Union Parishads in rural areas. About 65,000 elected functionaries (Mayors, Chairpersons, Ward Commissioners, and Members) lead and manage these institutions. About one-third of the functionaries are women, who are directly elected, as a result of the Local Government Act 1998, which reserves 30% of seats for women. Article 11 of the Bangladesh Constitution sets the fundamental framework of decentralization stating that "The Republic shall be a democracy in which effective participation by the people through their elected representatives in administration at all levels shall be ensured." Since independence in 1971, several attempts have been made to improve local government in Bangladesh, but they continued to be managed and controlled by the central government administrative structures. The first major attempt for decentralized political governance and local government system was initiated through the District Governor system by the District Administration Act of 1975. The District Governor's system was discarded soon after the coup of 1975. Subsequently the Martial Law Government introduced Local Government Ordinance of 1976. The divisional councils were abolished and a three-tier local government system, i.e., union parishad, thana parishad and zila parishad (a district-based local body) was constituted. In March 1982, the Martial Law Government constituted a Committee for Administrative Reorganization/Reform (CARR). The committee, among others, observed a "weak local government system tendered weaker by lack of appropriate political direction." Subsequently, a massive reorganization of the local government system in Bangladesh took place in 1982 and 1983. Amongst these reforms, the institutional setup of the Upazila Parishad was introduced, the Upazila Parishads were delegated with power to plan and execute their own development projects, and were provided with an elected chairman. This was the first time 2 in the history of Bangladesh administration that an elected office replaced the central bureaucracy at the Upazila level. Upazila was abolished by the BNP government soon after assuming power in 1991. The BNP government's main accusation was that the Upazila was an expensive `political experimentation" and accused the previous `autocratic regime' for using the Upazila administrative to set up ` a political base of its own at the grass root level in order to strengthen its grip over the country side'. At the same time, members of the opposition parties in the national parliament have seen the abolition of Upazila as a "politically motivated" action taken by the BNP government. The main opposition party, the Awami League, noted that "the dissolution of the Upazila Parishad was part of government's plan to politicize all tiers of the administration." In 1996 the Awami League as the ruling party made some limited reforms. They appointed a commission to reorganize the local government system of the country. The commission suggested a permanent local government commission independent of executive control and a four-tier local government: gram parishad, union parishad, thana parishad and zilla parishad. In general, from the early 1990s to mid 2005, political parties in power did not take any significant move to enhance or accelerate the decentralization process, in spite of commitments made in their respective election manifestos. The introduction of Gram Sarkar and inception of direct block grant system under the LGSP sponsored by the World Bank in late 2006 are the only significant developments in local government. As a consequence, LGIs have not had an opportunity to act as legitimate tiers of elected governments and functioning organizations, with mandates and funds to carry out their roles and responsibilities. Although several attempts have been made to improve local government in Bangladesh, they continue to be managed and controlled by the central government administrative structures. Bangladesh has not been successful in establishing a decentralized system of governance and accountability. A World Bank review of decentralization process in 19 countries ranks Bangladesh, along with a few other countries, lowest in the extent of decentralization reforms.2 The national election of 2007 was postponed and national emergency was declared on January 11, 2007, after major opposition parties boycotted the elections. A Caretaker Government (CTG), consisting of a chief advisor and council of ten advisors was established. The CTG has established a committee for strengthening local government institutes responsible for drafting recommendations for an effective local governance system. Civil society representatives have expressed support for an effective local governance system, especially elections; and fiscal and administrative devolution of power to UPZ. At the time of writing this note, the Awami League and its allies had won a two-third majority in the parliamentary elections held in late December. 2 For details, refer to Decentralization and Rural Development: Characterizing Efforts in 19 Selected Countries (draft), Keith McLean, Graham Kerr, and Melissa Williams, The World Bank, September 1998. 3 At the present time, there appears to be widespread implicitly. The study, Decentralization and Local grassroots support for decentralization reform and an Governance in Bangladesh: An Analysis of Stakeholder awareness that strengthening of local government Perspectives on which this note is based attempts to would be in the interest of the country. However, to capture and examine the views of both supporters ensure that the current efforts at strengthening and opponents of the Upazila reform. The findings of decentralization reforms at the Upazila level are this study (see Box 2 for summary) have become successful, it is crucial to understand the divergent increasingly relevant since Upazila elections have perspectives, especially those that continue to present been announced for 24 and 28 December, 2008. political resistance to reform either overtly or Box 2: Key Summary Findings: Political Analysis of Bangladesh Decentralization Reforms · The study found unexpected advocates of reform amongst Upazila Nirbahi Officers (UNO) and UP chairmen: Contrary to existing research on decentralization in Bangladesh, UNOs and UP chairmen are more likely to support current decentralization reforms. Although UNOs were initially resistant to working with elected chairmen of the UPZs, their bitter experience of working with MPs since 1991 has convinced many of them that an elected Upazila chairman is a more attractive alternative. Our analysis also revealed that UP chairmen now support UPZ reforms since the implementation of such local governance reforms would increase overall revenue and public support for all tiers of local government · Several measures that may contribute to success (and efficiency) of current reforms were identified: Examples of such measures are: (1) establish clear association between decentralization reforms and strengthening of democracy; (2) emphasize link between successful reforms and increased international legitimacy of current regime; (3) establish a clear division of labor between the UNO and UPZ chairman and provide adequate training so that each of them is aware of their responsibilities and do not feel threatened; and, (4) support for independent audit agencies to help tackle corruption and oversee implementation of reforms. · Timing of reforms is key: The general sentiment is that UPZ elections should be held prior to national elections. UPZ elections would galvanize the pro-UPZ reform constituencies which would be difficult to reverse. However UPZ elections are now scheduled to take place immediately after national elections in December. · Suggestions on how to overcome Members of Parliament (MP) and (some) bureaucrat resistance to reform were developed: These include (1) higher honorarium to MPs as an incentive to resist "petty moneymaking businesses"; (2) Upazila chairmen should be provided with sufficient logistic support (office, cars, employees) to avoid conflict with UNO over resources; (3) better trained UPZ chairmen who are aware of their responsibilities and extent of authority would not only strengthen the legitimacy and effectiveness of local governance institutions, but also improve their relations with UNOs. · Indications that the current round of reforms may be more sustainable than previous attempts: The majority of respondents reported that `times have changed' and there is greater local awareness and general support for local governance reforms. Most fundamentally, Bangladesh's historical experience with local governance has created popular awareness and support, even if not formal or organized, for the existence of such institutions. II. THE PROCESS OF THE reform in Bangladesh. The task team for the BANGLADESH STUDY study consisted of Bank staff and local consultants. The study was conducted in five In order to contribute to increased stages discussed below. Desk-studies and understanding of the different positions on fieldwork with support from local experts were decentralization and to help identify the primary means of data collection and appropriate actions to support the analysis. The study also drew from the political decentralization agenda, the political analysis of analysis and political economy literature and local governance reform study aimed to capture operational frameworks such as conflict analysis and assess the narratives and perspectives of and stakeholder analysis. key stakeholders towards decentralization 4 Stage One: Desk research study. More specifically, the Bank team with The first stage of the study involved identifying guidance from colleagues familiar with the potential stakeholders who would affect and be policy and academic circles in Bangladesh affected by local governance reform. This was a engaged consultants who had (i) the appropriate critical step since it set the parameters of the academic background to analyze study: who were the main players; what were decentralization reforms (mainly political their positions; and how might these positions science, sociology, economics); (ii) in-depth be addressed so as to ensure support for reform. understandings of specific stakeholders; and, Some stakeholders clearly had greater vested (iii) previous experience with decentralization interests in stronger and more effective local efforts, i.e. policy analysis and previous research governance while others were equally vested in in the subject area. undermining reform. The four broad categories of stakeholders identified for further The local consultants were each responsible for a investigation were: the military, the study report on the political analysis of bureaucracy, the political parties, local stakeholder perspectives ­ focusing on one of government leaders and local civil society. The the four identified stakeholder categories. To aim was to capture the different voices both provide deeper understanding of the within and across stakeholder groups. stakeholder's position on decentralization reform, each stakeholder study report was This stage also involved extensive background expected to capture the stakeholder's general research on Bangladesh's political system as views on decentralization, assess the past well as academic investigation on political experience of the stakeholder with economy of decentralization reform in the decentralization reform, analyze the country. It included data collection on stakeholder's perspectives on the CTG's Bangladesh's political system and its political decisions on local governance and offer history, understanding of current political predictions on future sustainability of reforms, tensions and analysis of previous (failed) and learn how the stakeholder believed UPZ decentralization efforts in the country. The aim effectiveness and local accountability could be was to use past experience to appreciate the strengthened. history and motives for stakeholder support and resistance. In preparation, the Bank team shared TORs and outlined roles, responsibilities and expectations The country's experience with decentralization with them. Once on board, extensive reform, understanding of stakeholders discussions with the Bank team generated dynamics, and the political economy and familiarity with each consultant's strengths and decentralization literature were used to design predispositions towards decentralization, which an overall analytical framework to guide the was particularly useful for the overall report. study, develop preliminary hypotheses on the resistance and support for decentralization, and Stage Three: Fieldwork, testing hypothesis prepare a questionnaire for each of the (four) At the third stage, the Bank team undertook a key stakeholder categories considered important scoping mission to test the hypotheses and to to the decentralization agenda. Although a set provide the go-ahead to local counterparts of carefully tailored questions were prepared for responsible for the political analysis of examination of the key stakeholders, efforts stakeholder perspective studies. Prior to the were made to ensure consistency across the onset of stakeholder political analyses, the Bank questionnaires to facilitate comparisons and team and local counterparts finalized contrasts between the stakeholder groups. arrangements on how the study would be carried out, discussed the framework for Stage Two: Integrating local counterparts analysis, refined the preliminary hypotheses, The next stage involved building a team of local and modified the individual questionnaires to counterparts with the right skill mix for the better reflect the local context and local actors. 5 Several meetings with local counterparts ­ both knowledge base on the (local) politics associated individually and as a group ­ were held after with Upazila reforms. they began their political analysis. In these meetings, challenges and political sensitivities were reviewed, hypotheses discussed, the III. UNDERSTANDING STAKEHOLDER balance between desk and field research PERSPECTIVES ON DECENTRALIZATION ­ evaluated, changes based on local experience RESULTS OF THE BANGLADESH STUDY incorporated into questionnaires, and the framework for analysis consolidated. It was At the outset, the study report presented a agreed that the analytical framework would: (i) discussion of Bangladesh's political landscape and assess perceptions of stakeholder attitudes to its experience with decentralization. This was decentralization in general; (ii) focus on important as it set the context within which the resistance to and support of the roles and study was conducted. The study focused on four functioning of UPZ; and, (iii) identify specific sets of findings. First, the main stakeholders measures ­ according to the perspective of each supportive of and against reform were identified. stakeholder ­ that are likely to increase support Second, the views of the different stakeholders were for reforms. presented, with a special emphasis on commonalities and the areas of differences. Third, Stage Four: Writing study reports the probability of success, i.e. obstacles and The fourth stage involved the preparation of the opportunities, of local governance reforms were perspective study reports. The Bank team and discussed. In the final section, future policy the local counterparts agreed to investigate the considerations were outlined. preliminary hypotheses as well as develop new hypotheses if fieldwork pointed to them as A. Identifying the Key Stakeholders important. Since the Bank team had Based on discussions with Bank staff engaged in independently conducted fieldwork and operations in Bangladesh, local experts and a interviewed key stakeholders, it was possible for review of the history of the decentralization reform team members to develop independent insights process, the Bank team was able to identify the key and to compare findings with those of the local stakeholders relevant for examining the prospects counterparts, i.e. positions as understood by the of local governance reforms. These stakeholders Bank team "ourselves" (with outsider were: (1) national-level politicians, mainly from the experience and knowledge of decentralization two major parties Awami League (AL) and reforms) and local counterparts (with insider Bangladesh National Party (BNP), national level experience and knowledge of reforms). leaders, and senior and mid level members of local party hierarchies (District, Thana and Union); (2) Stage Five: Synthesis report the military, including senior ranking officers of At the final stage, the Bank team prepared a the army, air and navy; (3) the bureaucracy both at synthesis report that presented the key findings local and central levels including former cabinet and proposed guidelines to support the secretaries, field-level sub-unit officials of line decentralization process. In Bangladesh, this ministries (e.g., education, agriculture, livestock, report drew on the Bank team's desk and field accounts, local government, engineering etc.); (4) research, and the four political analyses of local level politicians including Upazila and UP stakeholder reports prepared by local chairs, UP male and female members, secretaries counterparts. The report has increased and UP association leaders chairmen of UNO; and, understanding of the political dynamics of (5) civil society including school and college Upazila reforms based on the views of both teachers, retired principals, journalists, lawyers, supportive and apprehensive stakeholders. It NGO representatives, freedom fighters, social has contributed to the ongoing debate in the workers, farmers, small traders, shop owners. It is country on decentralization and local important to emphasize that a stakeholder group governance, and increased the World Bank's did not respond as a monolith, i.e. all stakeholders in a group did not hold similar views and these 6 variations were taken into account during the should be clearly established, articulated interviews, analysis, and findings process. and enforced. · A clear divide between central government B. Understanding Apprehension and Support and local government should be for Local Governance Reforms. maintained, with more administrative and The research revealed the following key areas of fiscal authority granted to the latter relative stakeholder perceptions: to the past. Overall support for local governance reforms: The Relationship between UPZ and other levels of stakeholders voiced strong overall support for government: The majority stakeholders viewed the the principle of local governance. However, the UPZ as an important local governance institution level of support was uneven when they were but were skeptical about the prospects of the Gram asked detailed questions about the reforms Sarkar (GS).3 The political parties, civil society, themselves, especially when the discussion bureaucrats, and local governance activists were referred to how the reforms would affect them. particularly critical of the governance role of GS. Stakeholders such as the Members of Parliament Their main concerns were that the GS was not (irrespective of the political party they belonged democratic as it was formed through a selection to) and bureaucrats were clearly apprehensive process rather than regular elections; it was seen as that their powers would be weakened by a new a `political platform' of the ruling party that had political landscape in Bangladesh, which led to corrupt local leaders and powerbrokers that promises a stronger and more democratic local had `captured' the institution for political government. patronage purposes. Assessments of past UPZ performance: A majority Aside from junior bureaucrats and political party of stakeholders felt that previous efforts at representatives, the remaining stakeholders decentralization had failed because of weak supported a three tier system consisting of the political commitments, resistance by local Zilla Parishad (ZP, or districts), the Union government chairmen (UP chairmen), MPs and Parishad, UP (lowest unit of local governance) and bureaucrats, lack of transparency in fund UPZ. They envisioned a ZP that oversaw and allocation, high fiscal and administrative coordinated the functions of the UPZ and UP, constraints, increased corruption, and inefficient while maintaining its own specific functions, use of public funds. authority and finances. In their opinion, the main role of the ZP should be to monitor and review Trajectory of current local governance reforms UPZ performance. (potential for success): Given popular support for local governance, the sentiment amongst all C. Probability of Reform Success stakeholders was that ignoring local governance Drawing from the Bank team's desk and field issues had high political costs. Since civilians research and the findings in the four stakeholder are now better informed about the potential and political analysis study reports, the likelihood of capabilities of local governance, the reforms success of local governance reforms were were more likely to get through the political analyzed. Findings on both obstacles and process and, in contrast to previous experiences, opportunities to reform are discussed below. the reforms themselves would likely be successful in the long-run. Analysis of Primary Obstacles to Reform · MP and bureaucratic resistance will be To be operationally effective this time around difficult but not impossible to overcome. however, the consensus was that two fundamental Both MPs and bureaucrats voiced areas need to be reformed: support for reforms, but in reality, · The functions, roles and responsibilities of both the political players (e.g., UNO vs. UPZ chair) and institutions (UPZ vs. UP vs. ZP) 3 GS or Gram Parishad is governing unit at the village level. 7 genuine support for the reform was reforms. The reasons for this were: (1) limited as it threatened their powers. the CTG could overcome political However, the political analysis revealed resistance from MPs and bureaucrats; that bureaucrats' views were more (2) no other clear advocates of reform; diverse than commonly assumed. For and, (3) national political parties were in example, several UNOs were relatively a state of disarray and would thus more supportive of decentralization provide minimal resistance. After the because of the tensions they experienced upcoming elections, the CTG would no in working with MPs. They were longer exist; the fact that it did not push therefore more accepting of changes to through reforms may be seen as a the status quo, i.e., working with an missed opportunity. elected upazila chairman instead of a · Populace views strong association between MP is a key proposal of the decentralization and democracy. decentralization reforms. The principle of local governance was well-supported by all stakeholders · No clear advocates for reform. because of its association with Interviews revealed that formal, democracy. It was generally accepted organized support for local governance that decentralized local governments reform either from the bottom-up or provided the opportunity for regular top-down was conspicuously absent in feedback from citizens, not only through Bangladesh. While all groups elections but also through frequent face recognized that reforms would generate to face interactions between local popular support once undertaken, it was communities and their elected members. unclear who would spearhead and The political analysis thus underscored agitate for reform. It seemed that civil a useful tool for advocates of society was weak and divided, while decentralization. none of those with policy-making · Clear link between decentralization and influence at the central level (e.g., international legitimacy. military, MPs) had sufficient incentive Stakeholder responses suggested that to organize in favor of reform. the success of local governance reforms · Sustainability of reforms is questionable. was likely to improve international Stakeholder responses revealed obvious approval of Bangladesh's government, tensions between upholding principles which has been in question due to the of democracy and supporting local military taking over power. Thus civil governance reforms implemented by the society organizations could use this caretaker government (CTG). Given finding to lobby for reform. that the CTG was not elected, it was · UP chairmen now support UPZ elections. both unclear if the reforms were Despite historical tensions, UP chairs legitimate and if they would be interviewed were unequivocal in their overturned as had been done in the support of UPZ chairs. They were past. The political analysis confident that the implementation of consequently highlighted the potential local governance reforms would tensions (i.e., the question of legitimacy) increase overall revenue and public between CTG initiatives and support for all tiers of local government. decentralization reforms. This was a marked departure from previous studies that consistently found Analysis of Primary Opportunities for Reform UP chairs resistant to reform and · Opportunity for reform is "now". considered them the major reason for At the time the study was conducted in the failure of decentralization reform 2007, a majority believed that the CTG under General Ershad's rule. was in an ideal position to push through 8 · Increased civil society debates and instrumental to successful consolidation of discussions on value of local governance. reforms, but their cooperation was also The majority of respondents strongly necessary to implement the reforms, i.e. believed that `times have changed' with "making them work." Interviewees suggested respect to local awareness and general several options that could address the lack of support for local governance reforms. support of MPs and bureaucrats, such as This key finding of the political analysis capacity-building training to enhance their skills would be useful for discussions on and understanding of government regulations decentralization and overcoming and procedures, career advancement political resistance. opportunities, clear division and articulation of D. Policy Considerations responsibilities, higher honorariums to MPs so The study provided guidance to the process of as to prevent corrupt practices etc. policy reform in a range of key areas, discussed below, including timing, incentive, and building Another key issue is to create a position of UPZ popular support. chair that allows for some control over decision making, while avoiding resentment from other Timing of Reforms and Elections key stakeholders (e.g. MPs, UNOs). One Stakeholders including donors, local academics, recommendation was that MPs should cede NGO representatives suggested that it was in direct control over the allocation of local the best interest of the country for the CTG to development funds; rather MPs should advise not only implement reforms "now", but to UPZ chairpersons in establishing social continue playing a key role, i.e. stay in power, development and local priorities. For this, both until reforms became well-institutionalized. MPs and UPZ chairs should receive training so This is a counterintuitive finding since there has that they are aware of their roles, responsibilities been international consternation regarding the and powers, and do not interfere in each other's persistence of the CTG. jobs and do not feel that their positions are under threat. Several stakeholder groups argued that it was preferable for the UPZ elections to be held prior Building Popular Support to national elections. Interviews with national Interviews with civil society representatives and local politicians suggested that the CTG and local academics emphasized three distinct would get the least resistance from the political ways in which popular support of local parties if it both took the initiative to reform government could be strengthened: (1) Better UPZ and scheduled UPZ elections before the trained UPZ chairmen; (2) Independent audit parliamentary elections. Sequencing was thus agencies, in addition to UNOs, could be invited an important factor in overcoming political to oversee UPZ functions and to tackle resistance. While future events will demonstrate corruption; (3) NGOs could play a more active the sustainability of the reforms, the CTG role in educating and disseminating information announced on 20 September that national at the rural level. parliamentary elections would be held on 18 December 2008 with Upazila elections on 24 and 28 December 2008. Thus it the UPZ elections IV. LESSONS LEARNED would not be held prior to the national elections and the CTG would not be responsible for the One of the most important lessons from the implementation of the planned reforms. execution of the political analysis of decentralization study in Bangladesh is the need Aligning Incentives to Support Reform to be reflexive and aware of the position of the Bank Findings showed that MPs and bureaucrats, as a stakeholder. The advantages and challenges potentially the strongest opponents of reform, encountered in conducting an analysis of this needed incentives to support local governance. kind from the position of the World Bank are It was not only their political support that was summarized in Box 3. 9 Box 3: Benefits and Challenges of conducting a political analysis from the departure point of a Bank operation 9 Advantages Access to resources and informants: The leverage and reputation of the World Bank contributes to excellent access to in-country resources and support. In Bangladesh, the Bank team had extraordinary access to resources such as primary and secondary data, local officials, NGO & CSO representatives, and donor partners willing to participate in discussions and provide their expertise. External standpoint and ability to bring a comparative perspective: Respondents were generally enthusiastic about interacting with the Bank team who they felt could "make a difference in their lives" (as noted by several interviewees). Respondents expressed an appreciation for an `outside' perspective, and it was clear that many hoped Bank staff would bring its expertise to guide reform initiatives based on their experience and knowledge of other successful cases. The Bank team found that its skill expertise was enhanced by the involvement of local consultants, who brought the `insider" perspective on board. Challenges Deep-rooted assumptions: A major challenge was overcoming deeply-rooted assumptions on decentralization and arriving at honest views on reforms. Since decentralization as a concept was viewed as `good' and `moral', respondents were hesitant to be seen as anti-local government, and consequently, anti-democracy. Interviewees repeatedly stated that they were not against decentralization, even if their answers suggested otherwise. Stakeholders hid their biases in order to concur with perceived World Bank preferences. While the Bank team had open discussions with stakeholders, at the same time, stakeholders were very conscious during interviews and tempered answers to what they thought Bank representatives wanted to learn. The findings of local counterparts were therefore crucial to verify the views of key stakeholders as understood by the Bank team and to provide additional perspectives. Finally, the personal views of the local counterparts (and the Bank Team) need to be considered. By virtue of local consultants' interactions and experience with the local environment, they likely held strong prior assumptions about decentralization. The Bank Team likely had similar assumptions based on experiences in other country contexts. Caution needs to be exercised in the structuring of the questionnaires and in comparing and contrasting findings of local consultants and the Bank Team. Political sensitivities: Political Analysis needs to be sensitive to the broader political climate at the time of investigation. This study was conducted during the rule of an interim caretaker government in Bangladesh. Both stakeholders and local consultants were naturally guarded with their answers and approach in this environment. Questions arose (amongst both analysts and stakeholders) on the purpose of this study and its implications for decentralization reform. Ultimately, in a politically fragile climate, it is important to be cautious in ensuring that political analysis findings do not create more problems than they are intended to resolve, and to temper questions and findings on politically sensitive issues. Awareness of the position of the Bank as a political actor is critical to both establishing relationships and interpreting information provided in the context of a Bank study. Finally the following are some key lessons meaningful, it is imperative to interact with the identified on the basis of the Bangladesh work country team so as to create an environment which are presented as a contribution to future where the study findings are used to engage work of this kind. Many of these are applicable differently and are embedded into the design to other types of analytical work, but they and implementation of decentralization reforms. acquire increased importance in a political analysis study which deals with the politics of Establish early consensus on purpose(s) of reform and sources of support and resistance, political analysis findings. For studies of both combustible and sensitive issues political analysis to accomplish their broader goals (e.g., political credibility, understanding of Country team buy-in is important. Given the divergent views), it is essential to identify the political nature of the study, it is crucial that it primary audience at the onset of the study. The generates support and sustains commitment of primary audience of the political analysis needs the country team. To make the study to be clear ­ is it the government, the country, 10 the World Bank, donors, or a combination? developing the study framework as well as There should be agreement on the use of the analyzing the findings. It is particularly useful study ­ if internal, how would the country team to identify such assumptions before conducting use study findings; if publicly available, how fieldwork (e.g., consultants often assumed there will study findings be shared within and beyond were no drawbacks to instituting the Bank in terms of workshops, use in design decentralization reforms). and implementation of reform, and dissemination events to initiate dialogue and Be knowledgeable about local political discuss findings? circumstances. The team must educate itself before fieldwork about the current political Enhance knowledge, expand expertise, and situation, particularly if it is fragile. This maximize skills by strengthening partnerships knowledge allows the team to develop with local consultants. Since a primary politically sensitive questionnaires (so as to put purpose of the political analysis is to capture both stakeholders and local consultants at ease); local perspectives and needs to guide reforms, it makes it easier to detect cautionary responses the skills and experiences of local counterparts from stakeholders when analyzing findings; are essential. A partnership that consists of the and, importantly, it allows the team to be Bank team, which brings in external experiences realistic about the strength of the findings, their with decentralization and ability to design implications and audiences for dissemination. analytical frameworks, and local counterparts, To summarize, in-depth knowledge of local who bring local experience and expertise, is circumstances better informs both the critical to effective stakeholder political organization and findings of the political analyses. This partnership has the added analysis study, making the end results more advantages of: (1) presenting a more effective. representative picture (insider and outsider views) on positions towards decentralization; Political analysis should be an iterative and (2) enhancing the democratic nature of process: Political Analysis is not and should not reform by incorporating voices of marginalized be a one-time investigation. While the main groups. Finding the right skill mix of political study should be conducted prior to the reform, analysis expertise, local knowledge, and findings should be the basis for monitoring and experience with political economy of making changes if necessary during and after decentralization is therefore crucial to the the implementation of the reform. success of the study. Ensure widespread dissemination of findings to Be sensitive towards local culture: Exhibiting key stakeholders. This lesson is important sensitivity through understanding of the culture because it helps to improve political credibility automatically improves trust and and fosters information about the design and communication. One advantage brought in by impact of reforms. Political credibility is Bank team members is their experience in other improved because the widespread contexts, which helps enhance their respect for dissemination of findings reinforce to local culture and adapt lessons from other stakeholders that they have a voice in the contexts. Additionally, regardless of whether a reforms. It also educates stakeholders on Bank team member speaks the local language or potential areas of cooperation (and conflict) with a translator is used, respondents become more other stakeholders on decentralization. The comfortable and communication is improved design of reforms is improved because when consultations are conducted in the local widespread dissemination of the findings fosters language. deeper dialogue about the obstacles and advantages of current reform proposals. Question assumptions. The importance of Positive impacts of reform are generated recognizing unsupported assumptions about because findings highlight local constraints to decentralization (amongst respondents, local reform and suggest ways to overcome them. consultants and Bank team) is important for 11 Do not hesitate to ask hard questions. This is decentralization process so as to have an effect the prerogative of outsiders. Posing questions on reform implementation; and, (3) proposals on that stakeholders may not anticipate can help how findings can be widely disseminated and overcome bias or feelings of intimidation that have a feedback mechanism. respondents may hold. Asking, for instance, `is decentralization necessarily a good thing?' can This note is based on the study, "Decentralization and Local encourage them to abandon guarded answers Governance in Bangladesh: An Analysis of Stakeholder Perspectives", conducted in 2007. The study was conducted and overcome notions that only positive by the World Bank's task team comprising of Nita Rudra answers about decentralization are expected. (Associate Professor, University of Pittsburgh) and Shonali Sardesai (Sr. Social Scientist), the authors of this note. The Develop clear policy implications. It is study drew from the Bank team's desk and field research as well as four reports prepared by local counterparts. The important not to lose focus of the main goal findings of the study are reflected in the note and the which is to develop more workable, effective authors would like to mention the contribution of our local and legitimate reform proposals. One danger of partners: Dr. Atiur Rahman, Dr. Mirza Hassan, Dr. political analysis is to begin focusing on the Salahuddin Aminuzzaman, and Dr. Zarina Rahman Khan. study report, rather than the process of local The authors would like to thank the Social Development governance reform. In other words, simply Department for funding the study. The authors appreciate capturing the views of key stakeholders and the inputs of Caroline Kende-Robb (Sector Manager SDV), synthesizing them for the final report is not a Junaid Ahmad (Sector Manager SASDU), Nilufar Ahmad (Sr. Social Scientist), David Savage (former team leader, sufficient end in itself. The synthesis report Local Governance Support Project) and Balakrishna Menon must contribute to changes and therefore should (Sr. Urban Specialist), to the study. The authors would include the following: (1) guidelines for policies especially like to thank Andrew Norton (Lead Social based on the responses and concerns of Scientist) for his intellectual input and guidance on both the study and the note. Additional copies can also be requested interviewees; (2) guidance on continuance of via e-mail: socialdevelopment@worldbank.org dialogue between stakeholders during the