Dumisani Nkomo DEVOLUTION of power to sub-national and local tiers of government must be viewed as a prime enabler of economic development and not as a tool of political administration.
As I have argued before, devolution of power is not an end itself, but a vital means to facilitating economic and social transformation. It is worrying that devolution of power has become the sole domain of political parties, civil society and local authorities and has been viewed as a tool of political contestation and not economic development.
What is devolution? Devolution of power is the statutory transfer of power from the central government to lower tiers of government. These lower tiers of government are sub-national or provincial governments, and local government/municipal level.
Countries, which have devolved systems of government include Kenya, the United Kingdom, Eswatini, South Africa and Spain. In fact, countries such as Switzerland, the United States and Canada have federal systems of government which grant even more autonomy to states, counties or cantons, as is the case in Switzerland.
Kenya has an interesting model of 47 counties whilst Eswatini has five regions in the devolved Tikundla System. The devolved system of governance in most of these countries has brought economic development dividends through equitable development across different regions, access to decision-making processes and ease of doing business.
Devolution of power in the Zimbabwean context is well defined in the Constitution of Zimbabwe, Section 264 which states that whenever applicable, governmental powers and responsibilities must be devolved to provincial and metropolitan councils and local authorities.
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Devolution of power is further enunciated in the government’s Devolution and Decentralisation Policy of 2021. The government’s economic blueprint makes the National Development Strategy (NDS1) references devolution of power and devolution of power.
Having said this, it is clear to all and sundry that devolution of power is a centrifugal policy tool in shaping the collective social, political and economic destiny of the nation.
Devolution, ease of doing business
In order for any country to record significant Gross Domestic Growth (GDP) as envisaged in NDS1, the concept of ease of doing business must be embraced and implemented. Ease of doing business on paper and in theory is a cardinal policy principle for the government of Zimbabwe, but the gap between rhetoric and reality has been huge in this respect.
Ease of doing business cannot be separated from devolution of power and decentralisation. It only holds to reason that if it is easier to do business in Zimbabwe, business entities should have close proximity to decision-making processes, either geographically or virtually and technologically.
Ease of doing business or EODB is scientific in nature and is based on a defined index which uses factors such as speed [timeliness] of accessing permits, licences, starting a business, opening an account etc.
A lot of these EODB factors are incumbent on access to decision making organs. Access to decision-making organs is integrally interwoven into devolved services and devolved service delivery, and decision making are tenets of devolution of power.
It is therefore not only logical, but also imperative to then view devolution of power to lower states of governance as a tool of economic development.
When investment and tender processes are devolved, there is an economic dividend that is delivered because, in order for business to access services quicker and faster, services and decision-making processes have to be closer.
Again, the growth of digital technologies has launched us into the lateral world of virtual access through online transactions, interactions in the realm of e-commerce and e-governance.
Lateral development of digital competencies, together with physical linear delegation of power to lower tiers of government are critical components of increased investment, economic growth and development.
The corporate sector through its umbrella associations, such as the Confederation of Zimbabwe Industries, the Zimbabwe National Chamber of Commerce and others must then see advocacy for devolution as an imperative in facilitating EODB.
Operationalising devolution
In the broader scheme of things, it is worrying that devolution of power is not viewed as a governance and economic development tool to ensure that no one and no place is left behind as per Sustainable Development Goals.
A cursory mention of devolution is made in the tail end of the document and there is no organic or logical linkage to the broader imperatives of sustainable economic growth. Some of the key NDS1 objectives are:
Achieving sustainable inclusive equitable GDP growth;
Promoting enterprise development;
Strengthening social infrastructure and social safety nets;
Ensuring sustainable environmental protection and resilience; and
Promoting good governance and corporate social investment.
Whilst these are not the only objectives of NDS1 it stands to reason that the five objectives stated above can be better achieved through an economic and governance architecture that is devolved.
The country’s economic blueprint needs, or needed to capture how devolution can be an enabler of sustainable growth.
What is important is investing in thinking on how devolution debilitates enterprise development, for example through easier access to services/loans etc or how it can deliver sustainable environmental protection.
The organic and logical linkages between government blueprints are not obvious and clear.
Devolution imperatives
To be fair and honest the government devolution and decentralisation policy is quite a good framework to start with. What is a challenge are the implementation modalities and complexities, as well as the absence of a legal framework, which is attuned to the new realities of devolved governance.
Key concepts, which need to be operationalised in the devolution economic development framework include, but are not limited to the following:
Fiscal devolution — to empower sub-national and local authorities; to have a measure of autonomy in this respect.
Fiscal equalisation — this concept is well defined in the Devolution policy as it addresses issues of equitable development. It must also include areas or regions which have been historically disadvantaged because the current matrix is limited to attention to the Poverty Development Index population size or density, infrastructure quality and deficit.
Support for Regional Economic Development — RED and local economic development are brilliant concepts which can facilitate sustainable growth
Sub-national sources of revenue
Devolution of power will not work if local and sub-national authorities do not have broad, sustainable sources of revenue.
This has to be balanced with preventing multiple taxing of individual and corporate citizens.
Notably, however, the Devolution and Decentralisation Policy outlines the following as sources of revenue for sub-national and local authorities:
Rates
Levies
Special levies
Fees and service charges
Rent and hire charges
Licences and permits
Loans
Profits
Utilisation of natural resources
It is vital to invest in strategies of broadening revenue bases of sub-national and local authorities so that they are able to deliver on their mandate of delivering services to people and communities.
Importantly, in order for devolution to work for the economy, provincial ministers must preside over provincial governments which have actual budgets to deliver their mandate.
The provincial ministers or governors must not be presidential appointees, but chosen from provincial councillors and they must be vested with executive powers so that they do not become ornamental and cosmetic political appointees.
Mayors for the metropolitan councils of Harare and Bulawayo must be executive in nature if devolution is to work and deliver.
Lastly, devolution of power is an enabler of economic growth and is a strategy of achieving sustainable social transformation.
- Nkomo is a writer and development practitioner. — dumisani.nkomo@gmail.com