(Paper presented at The 4th
APANDS Conference held by Graduate School of Public Administration, National
Institute of Development Administration, Thailand. Bangkok, September 2-3,
2010)
Abstract:
This study is about the
relevance of deconcentration as a central government’s instrument to perform
national policies in the local level. The relevance of deconcentration will be
scrutinized from various perspectives, i.e. the degree, the substance, and the
subject.
The study is supposed to offer
a concept on the program, mechanism, and budgeting pattern which is ought to,
might be, or unnecessary be run in the framework of deconcentration. It can be
stated that deconcentration is having significance and relevance when national
program, mechanism, and budgeting pattern may not be altered by any other
option such as centralization, decentralization, and assistance task (Dutch
term: medebewind).
A.
Introduction
The study of decentralization is one of the most
venerable issues in the field of public administration. It is also one of the
most vigorous policy choices in creating a more democratic and responsible
government. In
spite of its impacts and benefits so far, there is almost no contention among
countries in promoting decentralization.
It is not surprising, therefore, that there is a large and growing
theoretical literature on decentralization (Cheema and Rondinelli 1983 and
2007; Turner and Hulme 1997; World Bank 1999; Bardan 2002, etc).
In
the academic discourse, deconcentration
is widely perceived as a part of decentralization. As Rondinelli (1999)
observes, decentralization consists of four types, i.e. political
decentralization, administrative decentralization, fiscal decentralization, and
market decentralization. In the context of central and local government
relationship, administrative decentralization might be the most important issu.
According to Rondinelli
(1999), administrative decentralization seeks to redistribute authority,
responsibility and financial resources in providing public services among
different levels of government. It consists of three major forms, i.e.
deconcentration, delegation, and devolution. Deconcentration, however, is often
considered to be the weakest form of decentralization, since it does not involve
any transfer of real power to local governments. Delegation is somewhat
perceived as a more extensive form of decentralization, while devolution
represents administrative decentralization that underlies most political
decentralization.
In the discourse of central –
local government relation, the use of decentralization term largely refers to
administrative decentralization, and more specifically devolution. In fact,
deconcentration is relatively and widely applied in many developed and
developing states as well, although the type and degree varied among individual
countries. Unfortunately, many scholars seem to have trivial attention on this
issue. It is probably the reason why there are insufficient academic sources
regarding solemn study on deconcentration. The studies of deconcentration, in
short, are far lacking behind those of decentralization.
The imbalances of
literature supply tend to bring about the imbalance in empirical implementation
of such concepts. Although deconcentration is used most frequently in unitary
states (Rondinelli 1999), but decentralization framework is actually much
more observable. In
the case of Indonesia
as a unitary state, there are eight decentralization laws have been implemented
(Decentralization Wet 1903, Law 1/1945, Law 22/1948, Law 1/1957, Law 18/1965,
Law 5/1974, Law 22/1999, and Law 32/2004). Ironically, there has been no single law
concerning deconcentration. It’s rather examined as a complementary
component. Up to now, there are only two government regulations (GR) on
deconcentration, i.e. GR 39/2001 and GR 7/2008. In addition, deconcentration is
often associated as the dichotomy of decentralization or devolution. In other
word, deconcentration has been mistakenly recognized as other form of
centralization, so that it is not a preferable policy both in Indonesia and
other democratic countries.
Due to considerations above,
it is fairly reasonable to propose a very basic question whether
deconcentration is really relevance as a central government’s instrument to
assure the implementation of national policy within the regions.
B.
Theoretical
Framework
1.
Decentralization
– Deconcentration Relationship
This
study notices that decentralization and deconcentration is not an opposing
concept one to another; it produces a continuum, instead. In other word,
decentralization (in this case: devolution) and deconcentration is not a matter
of dichotomy, it is rather a continuum. As depicted by Cheema and Rondinelli
(2007), the relationship between devolution and deconcentration / delegation
should not be seen as a dichotomy or as mutually exclusive, but rather can best
be understood as a matrix of relationships. Work’s study (2001, in Gera 2008: 103) concludes
that decentralization is not an alternative to centralization. It implies that
in any country, a certain degree or extent of decentralization and
deconcentration are concurrently and simultaneously deployed in managing
governmental affairs between central and local government. Likewise, FAO in its
publication (2006: 31) underlines that deconcentration and decentralization are
far from replacing each other; they have always been considered as
complimentary by political decision makers.
Similarly,
Eko Prasojo (no year) affirms that centralization and decentralization is a
continuum, not a dichotomy. It means that it is quite impossible for applying
one single principle, either centralization or decentralization, in managing
all governmental affairs. McBeath dan Helms (1983: 34), strengthen previous
avowals by confirming that two types of
decentralization, devolution and deconcentration, appear to enhance powers of
subnational units. All of these statements imply that decentralization
and deconcentration may be simultaneously deployed with different degree.
A
crucial question occurs in the context of centralization and decentralization
discourse: where is the position of deconcentration, and how do we explain the
relationship between centralization, decentralization, and deconcentration?
In
some articles written by Dickovick (2003), Hutchcroft (2001), and Cummings
(1995), decentralization has been analyzed from the reverse view of centralization.
In this case, centralization has two major variants, i.e. concentration and
deconcentration (FAO 2006: 31).
Since deconcentration is one of centralization variants, then people starts to
identify deconcentration as an expression of centralization. As a result,
deconcentration is frequently thought as a contradictory concept to
decentralization.
The
most important thing in managing relationship between central and local
government in a certain country, therefore, is creating a sustainable equilibrium
between centralizing and decentralizing forces. According to Kauzya (no year:
9), in every country there are always centripetal forces tending towards
centralization and centrifugal forces tending towards the periphery. All
countries, centralized or decentralized, always seek to find an appropriate mix
of these types, the central question always concerning how much decision making
power to transfer to local governments. Decentralization is undoubtedly
essential to promote good and democratic governance, but decentralization
succeeds best in situations where there is a strong central government in terms
of legitimacy and capacity (Kauzya, ibid).
2. Two
Sides of Decentralization – Deconcentration and Need to Sinergizing
As a
matter of fact, both decentralization and deconcentration show two different
sides: positive and negative. Decentralization wave around the world has
offered many positive results such as combating corruption (Arikan 2004;
Fjeldstad 2004; Fisman 2002), reduction in poverty (Braathen 2008; Crook 2001;
UNDP 2000; Moore and Putzel 1999), improving service delivery (WB 2001;
Kolehmainen-Aitken 1999; McLean 1999, Dillinger 1994), fortifying
accountability (WB 2000), preventing conflicts (Sasaoka 2007, Siegle and
O’Mahony), empowering community (Brinkerhoff 2006).
On the
other hand, decentralization may lead to soft–budget constraints,
macro–economic instability, clientelism, and enlargement of bureaucracies
(Cornelius 1999; Fox and Aranda 1996; Rodden 2000; Rodden and Wibbels 2002;
Stein 1998, quoted from Falleti 2004: 3). Similarly, Prud’homme (1995: 202-209)
stated that there are three dangers of decentralization, those are: 1)
decentralization can increase disparities; 2) decentralization can jeopardize
stability; and 3) decentralization can undermine efficiency. “Decentralization
may therefore a two-edged of sword”, says Brillantes Jr. (2004: 39).
Since
there is no guarantee that decentralization produces advantages only, it is
logical that the central government have to play balancing roles to reduce
negative impacts of decentralization. Balancing decentralization and
deconcentration will lead to a more integrated development across level of
government, i.e. embedding local policy into broader context of national
development and interest.
In comparative
case of Cambodia ,
Turner’s study (2002: 354) explores the benefits of deconcentration in
managerial perspective. Most probably, deconcentration could lead to the following gains:
§ Accessibility of officials. Officials are
available for consultation, advice, and complaint. As local officials can
exercise decentralized authority, they make the decisions and do not need to
pass them up the line to distant central offices.
§ Mobilization of local resources. It is easier for
locally based officials to identify local resources, both human and physical,
and then mobilize them in the pursuit of locally determined developmental
purposes. Officials should also be familiar with specific local constraints and
the dynamics of local politics.
§ Rapid response to local needs. Officials are
better placed to respond rapidly to local needs as they are in the territory
and fully aware of local conditions.
§ Orientation to the specific local needs. Because officials
know the local conditions, they are well placed to make decisions and allocate
resources which fit with the specific conditions prevailing in a particular
territory. Each sub-national territory may have some unique features which can
be taken into account when planning and allocating resources.
§ Motivation of field personnel. Appointed
government officials are more motivated to perform well when they have greater
responsibility for programs they manage.
§ Inter-office coordination. Coordination
between offices dealing with different functions is more easily achieved at the
local level where officials are physically close together and are often
familiar with each other.
§ Central agencies. The decentralization of service functions relieves
central agencies of routine tasks. Responsibility for these has been passed
down to the local level. Central agencies can thus focus on improving the
quality of policy. Monitoring local-level performance and providing assistance
to sub-national units are key element of this reformulated central government
role.
However,
the potential for adverse consequences has also been
recognized (Fesler, 1959; Smith, 1985, in Turner, 2002: 355). Distant central
bureaucracies may simply be replaced by mini-bureaucracies at the local level
which display many of the maladies exhibited by their parent institutions.
Local officials may still be habituated to work according to central
regulations and be unwilling or unable to respond effectively to local
preferences and conditions. Local administrators may still opt for directing
and controlling, rather than engaging in participatory partnerships. The
quality of local officials may limit their capacity for innovation and even
efficiency. Inadequate and/or unpredictable budgets may aggravate these
capacity constraints. Continued orientation to national agencies by local
officials may inhibit cooperation among local-level officials. Communications
with central agencies may be weak, etc.
Considering that both decentralization and
deconcentration have the same probability to produce positive or negative
impacts, they shouldn’t be placed in a dichotomy principle; it should be seen as
a complementary relationship. This kind of synergy reflects a continuum along
the decentralization – deconcentration pendulum.
In the
dichotomy principle, decentralization and deconcentration is replacing or
overwhelming each other. There is only one choice available, either
decentralization or centralization (deconcentration). Meanwhile, in the
continuum principle, decentralization is complement to deconcentration. In addressing
such dilemma, UNDP (1999: 3) concludes that decentralization is not an
alternative to centralization; both are needed. Similarly, Cummings (1995: 109)
also alleges that the question of centralization or decentralization is simply
a matter of proportion; it is a matter of finding the optimum degree for the
particular concern.
3.
Dispersal
of Power as the Essence of Decentralization/Deconcentration
The basic idea on the grounds to
implement decentralization and deconcentration is to divide and distribute
powers among local governments and between central and local government. This
aims at preventing concentration of powers which is the characteristic of
centralistic anthoritarian regime. By decentralizing powers while
deconcentrating some specific authorities, two objectives may be achieved:
effective developmental government and participatory democratic governance at
the same time. Bell
(in Prasojo, 2008) illustrates that national state is too small to deal with
huge problems, but it is too big to pay attention to tiny problems.
Deconcentration
itself constitutes a sharing of responsibility among multi-tiered of government.
That’s why deconcentrated administrations exist in all countries
(OECD, 1997).
At the Ministerial Symposium on the Future of Public
Services -- the first OECD meeting at the Ministerial level
on public management -- held in Paris
in March 1996, the Statement by the Chair (Alice Rivlin) noted that:
“Developments are
forcing, as well as enabling, changes in the structure and boundaries of
government. There has long been a debate about the size of government, as well
as whether to centralize or decentralize. We must now be willing to move in
both directions -- decentralizing some
functions while centralizing other critical policy-making responsibilities.
Such changes are under way in all countries.”
As a model of power sharing and responsibility dispersal,
both decentralization and deconcentration should be posed as an integrated part
of nation building, so that functions among different levels of government become
clear. In Indonesian context, decentralization Law of 2004
stipulates that the management of (central) government is applying the
principles of decentralization, assistance task, and deconcentration. While the
management of local government is applying the principles of self-autonomy and
assistance task (Article 20 verse 2, 3).
The law emphasizes that both decentralization and deconcentration are
not the principles in local government management as recently understood. It
means that decentralization and deconcentration would be designed fully by
central government, including its controlling and responsibility system. As a
result of new decentralization framework, local governments’ authorities are
getting wider, while central governments’ roles tend to be shrinking. In such
situation, however, the central still occupy the single right to uphold
national integrity and sovereignty. On behalf of national integrity, central
government keeps absolute rights of “intervention” over the lower government
levels, such as supervision, monitoring and evaluation, performance assessment
and appraisal, etc. In that sense, the rights to interfere might be executed by
ministerial or non-ministerial bodies in central level, or by local
offices/branches of central government.
The
best composition between decentralization and deconcentration in Indonesia is
indeed an ongoing process. It implies that degree of contribution of the two
principles is not clearly identified yet. Besides, the ideal balance of the two
principles is not obviously described as well. Ironically, deconcentration is
commonly recognized as a complement to decentralization. The urgency and
relevance of deconcentration is not proportionally acknowledged.
It can
be concluded that any alternative chosen, whether decentralization or
deconcentration, has to contribute to the implementation of national policies
within the regions. In other word, decentralization or deconcentration is not
an objective; it is merely an instrument to support national policies in
realizing national objectives.
As broadly
accepted, either unitary or federal states may apply decentralized or
centralized system, though the pendulum tends to move to the decentralized
side. Among unitary or federal states, centralization practices are more easily
observed in the first type.[2] Because,
the process of state formation in this type is not preceded by any agreement
between the small states that already exist.
From
Latin America region, centralized unitary state is represented by Costa Rica .
Ryan (2004: 82) conveys that centralist tradition in that country is among the
strongest in Latin America . Efforts to move
away from this tradition over the past 25 years can be almost uniformly
characterized as tepid, disjointed, and ultimately unsuccessful. The
decentralization discourse was characterized primarily by ambiguity, as quoted
from Rivera:
“…on
the one hand, in their verbal and written statements [central political
leaders] would affirm their support for decentralization and strengthening
municipal government while in institutional practice they acted to strengthen
the classical centralist model…. One is left with the impression that [these
leaders] are in agreement with decentralization in any form that does not touch
centralism.”
Comparable
picture can be observed in the European countries. According to Jeffery and
Wincott, 2006: 3), United Kingdom
has a reputation as one of the more centralized regime in contemporary Europe . The United Kingdom is in many respects
a highly centralized political system, with power formally concentrated in a
famously—or notoriously—strong and putatively sovereign parliament. Goldsmith
and Newton (1983: 216) also note that central
government has always been powerful in Britain ,
which, with France ,
is one of the most highly centralized, unitary states in the western world, but
in the last few years the centre has further consolidated its power by
increasing its legal, political, and financial control over local authorities.
Other
apparent centralized state can be scrutinized among Middle
East and North African (MENA) countries. Overall, local government
systems in the MENA region can be characterized as a form of deconcentration rather than one of
devolved local self-government. In general, the public administration
system is highly centralized, equipped with an elaborate system of
deconcentrated field offices of line agencies. Decisions for the most part,
especially service delivery decisions, are made by the central government and
the role of subnational authorities is largely confined to carrying these out.
In the region, the general trend is to have two distinct types of local
government units: deconcentrated and decentralized (municipal) units. The
operations of these two types of local governments are subject to totally
different rules. In all countries, the deconcentrated units of the central
government provide a big chunk of public services, including health and
education, under strict guidance of the central government. Whereas,
decentralized units (generally municipalities) perform limited number of
functions such as street paving and maintenance, construction of local roads,
street lighting, garbage collection, library and park services, and issuing
permits for constructions (Tosun 2008: 7).
“In
Vietnam ,
decentralization policy blends a deconcentration of service responsibilities
with an allocation of rights that resembles devolution. The latter, however, is
much less developed than the former, although provinces have considerably more
power and autonomy than sub-provincial entities. Even provinces are subject to
minimum expenditure requirements in some sectors, and the central government
still sets rates on major sources of revenue.”
(Smoke 2005: 29)
Meanwhile,
Cambodia ’s
decentralization is relatively unique. Following elections brokered by the
United Nations (UN) in 1993, the center reclaimed power from provincial
governors—who had previously ruled with a free hand—in order to impose
discipline on the intergovernmental system. Reforms adopted in 2001 led to the
election of commune councils and provided them small intergovernmental
transfers without formal service responsibilities or own-source revenues. This
approach focuses on meeting immediate community needs and developing trust
between citizens and the government as a first step in decentralization.
Provincial reforms have been limited (Smoke, 2005: 27).
Decentralization
in Indonesia
became more of a political imperative in the late 1990s, which is based upon the two new laws drafted in 1999, known as big-bang
decentralization. The two laws drastically altered the
national-subnational relations by transferring powers, taxes, funds, and
personnel to the regions. The authority of the central government has been
devolved to subnational governments except for defense, diplomatic, judicial,
fiscal, and religious policies. The hierarchical relationship between the
province (the first-level subnational government) and the district/municipality
(the second-level subnational government) has been abolished (Ito 2006: 139).
However, Under the new decentralization law of 2004, the relationship between
province and district/municipality government has been slightly amended, by
which governor is given new tasks of coordination, guidance and supervision
over district/municipality government (article 38 Law 32/2004). In addition,
regional heads (provincial governors and district heads) are no longer
appointed by the central government, but are elected by and accountable to
regional parliaments (at the respective level).
As a
result of such massive decentralization, the deconcentrated agencies of central
government have, for the most part, been abolished, but provinces continue to
represent the center in certain instances. It means that governor is the head
of provincial autonomous region, which is decentralization, and agent of the
central government, which is deconcentration, simultaneously. The governor is
responsible for implementing minimum standard of service and doing supervision
to local government (district and city/municipal) on behalf of central
government.
As
decentralization is getting more developed, deconcentration turns into diverse
side. Tambunan (2000: 54) notifies that deconcentration in Indonesia is still
blurred through his following statement: “ ... the two laws, which are
theoretically meant to complement each other, still leave the specific areas of
deconcentration unclear, and have not specified the regional/local agents in
the delegation process. In short, there is still uncertainty in defining
decentralization in Indonesia .”
Since
decentralization and deconcentration is an inter-connected concept, obscurity
of deconcentration policy design, for sure, will affect the implementation of
decentralization packages. It implies that strengthening of decentralization
should be simultaneously accomplished with refurbishment of deconcentration
design. This is sort of homework for future decentralized Indonesia .
Finally,
France
is indubitably an outstanding example of unitary state practicing
deconcentration principle. France
is a typical unitary state having long-rooted history that makes it essential
as a reference in the study of deconcentration and decentralization.
In the
political organization of France
the so-called ‘Jacobean logic’ plays an important role. The logic is best
summarized by the expression ‘L’une et indivisible République’ (the one
and indivisible Republic) which stands for a tendency towards centralization
and uniformity (Edwards and Hupe 2000: 1). France is also known as a type of
the ‘Napoleonic state’, which integrates the nation through a single
territorial administrative structure. Sub-national units (e.g. ‘departments’)
represent subdivisions of the national administration and are governed by a
‘prefect’ who is an agent of the central government. From the administrative
point of view, the vertically integrated structure of the Napoleonic state
makes it an archetype of a unitary state (Ansell and
Gingrich 2003: 142).
There
has been significant decentralization across several of the Napoleonic states,
including France , Italy , and Belgium . In France , there
were no major decentralization reforms until 1982. The 1982 reforms created a
regional level of government composed of multiple departments and a new tier of
elected government. This act also restricted multiple office-holding among
sub-national officials and reduced the power of the prefect (Ansell and Gingrich 2003: 147). Likewise, OECD
(1997: 18) notes that the 1982 decentralisation plan gave full independence to
the regions and the départements in a range of areas such as education,
economic support measures, and local transport. It also gave responsibility for
the construction and maintenance of primary schools to the municipalities,
while retaining responsibility for most other education policy at the central
level.
Before
1982, however, administrative districts (circonscriptions administratives)
have no legal embodiment or autonomy as opposed to sub-national governments.
The administrative districts are run by state officials who are hierarchically
subordinate to the Prime Minister and the ministers in Paris . In that period, hence, the distinction
between sub-national governments and administrative districts is relevant
(Edwards and Hupe 2000: 2).
Then
in 1982 there is significant progress on decentralization policy in France , marked
by the enactment of Law on the Rights and
Liberties of Communes, Departments and Regions, also known as Loi
Deferre. Knapp dan Wright (2000: 357) assertively pronounces 1982
appears as a turning point in central-local government relations in France , since
they really were transformed, in legal terms, by the flurry of decentralization
legislation. Nevertheless, it is important to notify that even though
the French system of government has gone through many major changes, the
underlying culture has remained the same. This culture entails a broad consensus
on France
being a centralized nation, as laid down in the Constitution’s 20th Article;
the central government decides and directs the nation’s policy. This central
dominance affects the position of sub-national governments, which are
considered subordinate to the centre. More in general, it affects the relations
between the state and society (Edwards and Hupe 2000: 1).
In
2003-2004, 20 years after the great reform of 1982, a new impetus was given to
decentralization, still in the same spirit of consolidation and a search for
balance between central and local powers. Therefore, France is experiencing a dual
delegation of power: on the one hand to local elected officials, which is
decentralization, and on the other to the appointed representative in the region,
which is deconcentration. From the perspective of deconcentration function, the
Prefect is the agent of the state’s authority and the delegate of the
prime minister and of each minister in the territory, and responsible for
national interests, administrative control and respect of the law.
French’s
experience shows a general drift that the reform of public administration is
still running to find the best composition on the role of central and local
government. This means that decentralization and deconcentration is seen as a
reciprocal relationship, instead of a contradictive approach.
C.
Problem
Statement of the Research
Based
on the above explanation, it can be formulated the research problem as follows:
the
implementation of deconcentration function in Indonesia is relatively weak as an
instrument to assure the national policy within the regions. Such kind
of weakness, in turn, leads to the implementation limpness between
deconcentration and decentralization functions (asymmetrical implementation).
The
weak implementation of deconcentration function itself might be contributed by
the following more specific problems:
1.
Unclear
in the delegated authority of deconcentration functions. Governor
as central representative in the region (deconcentration body) has no clear and
specific authorities delegated from ministerial/non-ministerial institutions.
2. Lack of deconcentration apparatur
in the region. The only central representative officer in the region is
governor, but he doesn’t have deconcentration staffs and secretariat.
3.
Weakness in financial management of deconcentration fund. There is no standar guideline among ministeries regarding the
financial management (from planning to reporting) on deconcentration funds. As
a result, there are many cases found of improperly usage of such funds. In
addition,
there is an indication that deconcentration fund is somewhat overlapping with
that of decentralization.
D.
Research
Question
Problem
statement above illustrates that Indonesian government is not serious enough in
designing and implementing deconcentration as a tool to maintain fruitful synergy
among different level of government. This situation is reflecting a way of
thinking that deconcentration is not a priority and not an important function
in terms of managing relationship across government as well as implementing
national policies within the regions.
Considering
that, the research question would be: “Is deconcentration
really relevance in assuring national policy within the region, as well as
strengthening local development in Indonesia ?”. The
relevance of deconcentration itself might be scrutinized from various
perspectives, i.e. the degree, the substance, and the subject.
E.
Research Objectives
1. To describe the relevance of deconcentration in assuring national policy within the region, as well
as strengthening local development in Indonesia .
2. To propose a policy recommendation on effective deconcentration
based on historical perspective and cross-country experience. This is expected
to bring about the new equilibrium between deconcentration and decentralization.
F.
The
Approach of the Study
The first step to build comprehensive
concept on deconcentration is identifying empirical phenomena and facts (existing condition). The next step would
be analyzing causalities and possible alternatives to improve the situation. In
the step of analysis, literature review and cross-country experiences would be
very beneficial. Therefore, this study will be applying three approaches as
follows:
1.
Theoretical approach, to elaborate basic concept of
deconcentration and its relation to decentralization, advantages and
disadvantages of two concepts, and varied models likely to be applied.
2.
Comparative experimental approach, to observe and to compare the
implementation of deconcentration in some countries, particularly unitary
states. From such comparison, we can draw a lesson learned to be adopted in the
context of Indonesian government system.
3.
Normative empirical approach, to elucidate the current
regulation on deconcentration and its impact on the governmental programs both
in central and local level.
Those three approaches, in turn,
will be exercised to formulate deconcentration model which is more precise for
unitary state like Indonesia .
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[1] This part is mostly
excerpted from my publication titled Balancing
decentralization and deconcentration: emerging need for asymmetric
decentralization in the unitary states, Discussion Paper No. 174, Graduate
School of International Development (GSID), Nagoya University , Japan ,
August 2009.
[2] Centralization might be transformed into two different variants, concentrated
centralization and deconcentrated centralization. Such variation leads, in
turn, to a misleading conception that deconcentration have been perceived as,
more or less, identical to centralization.
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