Capacity building challenges in Malawi's local government reform programme

Abstract

Since the advent of multiparty democracy in June 1994, the Malawi government has embarked on a local government reform programme involving political and administrative decentralisation to promote democratic governance, local development and effective public service delivery. However, the wholesale adoption of the decentralisation process tends to ignore a critical debate on capacity challenges in local government. The main argument is that the success of the reform programme is contingent upon the availability of adequate capacity in local government institutions. Therefore, this article examines the critical contingencies, namely administrative, technical and economic capacity, in the context of local government reform and decentralisation in Malawi. The major conclusion is that capacity problems, including the lack of appropriately trained personnel and a shortage of funds, seriously hamper effective public service delivery. Thus, there is a need for implementing comprehensive capacity building programmes, including training and development, and financial management strategies to attain the desired objectives.

1. Introduction

The Malawi government has embarked on various public sector reform measures since the advent of the multiparty system of government in June 1994. One such reform is the local government reform programme, underpinned by the concept of decentralisation. Broadly, the reform entails structural changes both at central and local government levels and substantial devolution of powers to local authorities. Besides the need to improve service delivery, local government reform and decentralisation is driven by the government's desire to promote good governance principles, such as transparency and accountability, and to democratise decision-making processes since democratic governance requires citizen empowerment and political participation in the policy-making process (Local Government Act, No. 42 of 1998, section 3). To this end, local government has been accorded a new status and role, which require an appropriate quantity and quality of infrastructure and human and financial resources for effective performance.

However, the wholesale adoption of local government reform and political and administrative decentralisation tends to mask a debate on critical issues relating to capacity problems and challenges in local government institutions. Although various capacity building programmes such as institutional building – putting financial and planning structures in place, training personnel and providing equipment – have been initiated recently to ensure effective local governance (in view of the expanded responsibilities brought by the reform process), there is a need to evaluate them and to determine whether they adequately address the inherent capacity problems. Capacity building in the context of Malawi's local government reform is critical, particularly in view of the fact that government at local level in the previous one-party system was characterised by inadequate resources in terms of money, skills and equipment, under-utilisation of staff and understaffing (GOM/UNDP, 1996: 11–15). While issues of capacity in local government are well documented for other parts of Africa such as Ghana (Nkrumah, 2000), Botswana (Sharma, 2000), Uganda (Makara, 2000), Zambia (Chikulo, 2000) and Tanzania (Mukandala, 2000), there is a paucity of literature about Malawi. The question that arises pertinent to this analysis is: how well are capacity challenges addressed in Malawi's local government reform programme to ensure efficient and effective public service delivery? Therefore, the purpose of this article is to examine the critical contingencies, namely administrative, technical and economic capacity, in the context of Malawi's local government reform programme. The article is divided into four sections. The discussion starts with conceptual issues and definitions relating to local government, decentralisation, and capacity building. This is followed by an overview of local government reform and the decentralisation process in Malawi and their implications for capacity building. The third section focuses on capacity building challenges and their impact on the operations of local government institutions. Lastly, recommendations aimed at promoting effective performance in local government are presented.

2. Conceptual underpinnings

First, it must be mentioned that an overview of Malawi's local government reform is elaborated separately (Section 2.1). This section seeks to clarify key concepts underpinning this analysis, namely local government, decentralisation and capacity building, and to illuminate the context of Malawi. This is necessary because these concepts have been accorded different meanings and interpretations, especially among social scientists.

2.1 Local government

The centralist and decentralist theories provide a base for understanding the meaning of local government. On one hand, centralist theories hold the view that local government is a subservient part of the central government and is under its control. On the other hand, decentralist theorists view local government as local self-government through decentralised autonomous bodies (Ismail et al., 1997: 14). However, despite the differences in perspectives, local government essentially refers to a sphere of government that is closest to its constituents and involved in the provision of a wide range of services that affect the lives of its inhabitants. It includes decentralised and representative local institutions, with general and specific powers, devolved and delegated to them by central government, in respect of a restricted geographic area within a nation (Zybrands, 1998: 193). According to Matlosa (2003: 102), local government denotes a transfer of power and authority to plan, make decisions and manage well-defined functions from central government to lower-tier public institutions.

2.2 Decentralisation

Decentralisation is a generic concept for various forms of structural arrangements by which power and resources are distributed to facilitate effective coordination of managerial functions, and the four major dimensions of decentralisation are delegation, privatisation, deconcentration and devolution (Matlosa, 2003: 103). In the political and administrative context, devolution and deconcentration are the two forms of decentralisation that are traditionally adopted in government (Kiggundu, 2000: 88). On one hand, devolution involves the transfer of both political and administrative authority and power by central government to local units of government, which operate in a quasi-autonomous manner outside its direct administrative control. On the other hand, deconcentration involves the transfer of some administrative authority and responsibility (but limited power) down the hierarchy within central government (Matlosa, 2003: 103).

The adoption of some form of decentralisation by developing countries is justified in terms of the political, socio-economic and administrative merits expected to be gained. According to Brinkerhoff (1998: 8), political benefits gained through decentralisation include enhanced accountability, transparency, a more balanced power distribution and genuine democratic participation. In the socio-economic context, decentralisation is regarded as a key structural mechanism that enables ‘democratic’ distribution of income and wealth (Kiggundu, 2000: 88). In view of the disappointing results of a centralised economic system of planning, decentralisation is adopted in order to improve the local economy by implementing egalitarian policies. Administratively, decentralisation is considered a solution to overloaded and over-centralised institutions. According to Ikhide (1999: 168), decentralisation allows for decongestion at the centre. It frees senior officials from spending time on minute details relating to the local level, and allows them to concentrate on strategic matters such as budgeting and long-term planning.

However, although decentralisation is widely adopted, it is not without its critics. For instance, Smith (1985: 137) argues that decentralisation can be parochial, inegalitarian and unconcerned with the privileges and exploitation built into local power structures. Thus, decentralisation tends to ignore the possibility that holders of economic power at local level can dominate local institutions and perpetuate oppression. None the less, effective decentralisation of state power from central government to local authorities is essential for democratisation because ‘effective and participatory governance requires that government structures be brought closer to the general population and that local institutions become channels through which people can both participate, contribute their resources for development and express their needs to the central authority’ (SAPES/UNDP/SADC, 1998: 93). However, it must be emphasised that the success of any decentralisation strategy is dependent on a number of internal and external contingencies, including administrative, technical and economic capacity.

2.3 Capacity building

It is important to clearly highlight the meaning of capacity and capacity building, since these terms, which underpin this analysis, are associated with several meanings, such as the training of human resources in various areas of specialisation, and institutional strengthening both formally and informally. To begin with, Franks (1999: 52) differentiates between capacity and capability. On one hand, capability is defined as the knowledge, skills and attitudes of individuals, separately or as a group, and their competence to undertake responsibilities assigned to them. On the other hand, capacity is defined as the overall ability of the individual or group to actually perform the responsibilities, and its determining factors include the capabilities of the personnel, the overall size of tasks and the available resources that are needed to perform the tasks. According to MDGD/UNDP (1995: 1), capacity building in the public sector, including local government, entails improvements in the ability of organisations to perform appropriate tasks and requires improvements in the ability to identify problems, assess options for responding to the problems, formulate effective policies, implement appropriate activities, and sustain such activities so that they have an impact on socio-economic development. Similarly, Cohen (1995) argues that capacity building includes ‘the strengthening of the capability of chief administrative officers, department and agency heads and programme managers in general purpose government to plan, implement, manage or evaluate policies, strategies, or programmes designed to impact on social conditions in the community’. Despite the differences in definitions, capacity building boils down to the search for improvements in the ability of institutions, individuals or groups to efficiently and effectively fulfil their responsibilities.

3. Local government reform and decentralisation in Malawi – overview

In post-independence Malawi, performance by local government institutions declined due to, among other factors, strict control and interference in local government affairs by central government, a narrow financial resource base and inadequate and inappropriately trained personnel in the local government system (Apthorpe et al., 1995: 8–4). The continuing deterioration of people's welfare and public service delivery at the local level influenced the government to embark on the decentralisation process. The following analysis highlights three major phases of the decentralisation process, namely, the pilot district focus (1993–1996), the replication period (1997–2001) and the devolution consolidation phase (2002–2006).

3.1 Phase 1: pilot district focus programme (1993–1996)

The decentralisation initiative can be traced to the ‘situation analysis of poverty’ conducted by the government with the assistance by the UNDP in 1993. It was pointed out that performance by Malawi's administrative structure was hindered by the lack of decentralisation and devolution in terms of decision-making and financial autonomy at the local level (UNDP, 2000). Therefore, in order to address the institutional weaknesses, to facilitate citizen participation in decision-making and to improve public service delivery, a policy of selective decentralisation and the district focus programme were adopted. The programme, which was piloted in six districts (Dedza, Mchinji, Nkhata-Bay, Thyolo, Mulanje and Mangochi), had three major features. First, it involved the review of district development committees' (DDC's) membership. The DDC was a central government institution responsible for promoting government development policies and coordinating project management at the district level (MDDP, 1995: 10). The heads of line ministries (sectors) operating at the district level were removed from the DDC membership, leaving community representatives such as traditional chiefs, members of parliament and district council chairpersons. The line ministry heads constituted a new committee called the district executive committee (DEC). This committee was responsible for appraising development projects and making recommendations to the DDC on projects to be funded. The introduction of sub-national planning and financial management systems was the second major feature of the district focus programme. The district development planning system (DDPS) was introduced to facilitate the preparation and implementation of development plans, while district development fund committees (DDF) were set up to improve budgeting and speed up funding of local development projects (UNDP, 2000: 62). Lastly, sub-district structures, such as the area and village development committees (ADCs and VDCs), were reorganised and reinvigorated. These committees were accorded responsibilities such as planning, project identification and financial management, with the aim of enhancing citizen participation in governance and development activities.

However, the district focus programme was limited in the sense that it focused on deconcentration rather than devolution and strengthened central government structures, notably the DDC and DDF. Furthermore, duplication and wastage of resources continued, partly due to the lack of adequate and appropriately trained personnel (UNDP, 2000: 62). Because of these weaknesses, the government directed the Ministry of Local Government to undertake a thorough review of decentralisation initiatives, including the district focus programme, in order to develop an all-embracing decentralisation policy. This culminated in a number of studies and the ‘1995 Apthorpe Report’. This report recommended an integrated decentralised system of local government and provided the foundation for the draft national decentralisation policy, which was first approved in principle by cabinet on 26 January 1996 (Apthorpe et al., 1995).

3.2 Phase 2: replication phase (1997–2001)

The replication phase involved attempts to establish development planning and financial management systems that were piloted during the district focus programme in all the districts in the country. The shortage of skilled personnel and limited donor funds earmarked for the process could not adequately support effective nationwide replication. Furthermore, the replication of the systems was overshadowed by the process of developing and finalising the decentralisation policy (the policy was approved in October 1998) and the Local Government Act, No. 42 of 1998 (which was assented to on 30 November 1998, but became effective on 8 March 1999). The decentralisation policy, and the Local Government Act (Republic of Malawi, 1998, 2000), supported by the Constitution, provided for a new foundation for the local government system and reoriented it towards devolution rather than deconcentration. For example, it is clearly stated that that ‘Parliament shall, where possible, provide that issues of local policy and administration are decided at the local level under the supervision of local government authorities’ [Constitution, section 146 (3), Republic of Malawi, 1995]. Thus, the decentralisation process seeks ‘to create a democratic environment and institutions for governance and development at the local level; to facilitate the participation of grassroots in decision-making; to avoid dual administration (field administration and local government) and duplication of functions at the district level and to make public services delivery more efficient, more economical and cost effective; to promote accountability and good governance at the local level in order to help government reduce poverty; and to mobilise the masses for socio-economic development at the local level’(Republic of Malawi, 2000: 2). To this end, the first democratic local government elections were conducted in 2000, and attempts to reorganise local authorities and recruit senior management staff to put the new local government system into operation were initiated during this period.

3.3 Phase 3: devolution consolidation (2002–2006)

The devolution consolidation phase involved the actual implementation of the decentralisation policy through activities such as institutional development, both at the national and local government level, fiscal decentralisation, the establishment of viable district development planning systems and the commencement of the sector devolution process at the district level (GOM, 2001: 1). At the central government level, the departments of district administration and rural development, previously under the Office of the President and Cabinet, were integrated with local government to form the Ministry of Local Government and Rural Development. The Ministry is required to provide policy direction and guidance for effective operation of local authorities, to promote participatory democracy, accountability and transparency and to coordinate with other key institutions in matters relating to local development, auditing and distribution of government grants [Local Government Act, 1998, sections, 44(4), 54(3), 110(1)]. Clearly, local government reform has accorded the Ministry a wide scope of responsibilities, which require adequate capacity for effective performance. On the contrary, the available capacity tends not to be matched with the enormous responsibilities allocated to it and, as a result, effective operations tend to be hampered.

Another important reform measure is the reinstatement of the Local Authority Service Commission (LASCOM). Although the draft decentralisation policy and the Local Government Act of 1998 envisaged the abolition of LASCOM in order to ensure autonomy over personnel matters by local authorities, it has been re-established by section 147(4) of the Constitution and the Local Government Act No. 5 of 2001. Currently, LASCOM is responsible for the regulation of human resources management processes such as promotion, disciplinary issues and the appointment of senior staff for local authorities (Kamanga et al., 2000: 34). However, problems such as the shortage of trained personnel, limited financial resources and inadequate physical facilities prevailing in LASCOM have a negative impact on the human resource management process, particularly the recruitment and placement of staff.

The local government reform process has also led to the establishment of the National Local Government Finance Committee (NLGFC) in 2001. This is a new constitutional body, which is required to promote accountability and effective use of financial resources, receive annual estimates of revenue and expenditure, supervise and audit accounts, make recommendations on the distribution of funds, and prepare a consolidated budget for all local authorities [Constitution, section 149 (2), Local Government Act of 1998, section 44(4)]. However, financial and human resource constraints experienced by the NLGFC have led to operational inefficiencies, which are evident in the erratic disbursement of grants, and irregular audits. For instance, since its formation, the NLGFC has not carried out its regular audit functions in local authorities and as a result, abuse of resources by public officers is left unchecked (Mwadiwa et al., 2004: 35).

The focal point of the local government reform is, however, the local authority at the district level. The reform process at this level entails institutional and functional integration, rationalisation and absorption of human resources, composite budgeting and provision of funds for decentralised functions and services, and sector devolution to relieve central and sector institutions from operational responsibilities (GOM, 2001: 5–9). The major changes so far include, first, the integration of the district administration and DDC (under central government), and district councils into one unit called the District Assembly (local authority). Currently, there are 40 local authorities, categorised into 29 rural local authorities, three city assemblies, one municipal assembly and eight town assemblies [Local Government Act 1998, section 114(4)]. The District Assembly consists of two major structures, the political and the administrative. The political structure is composed of elected representatives such as councillors and members of parliament, and the administrative structure consists of appointed officials such as Chief Executive Officers, District Commissioners, Directors and sector heads in all line ministries operating at the district level (Mwadiwa et al., 2004: 4–15).

The second notable feature is that, unlike the situation that prevailed during one-party rule, local authorities have been accorded extensive responsibilities and functions. The responsibilities which are outlined in section 146 (2) and repeated almost verbatim in section 6 (1) of the Local Government Act of 1998 are as follows:

• to make policy and decisions on local governance and development

• to consolidate and promote local democratic institutions and democratic participation

• to promote infrastructural and economic development thorough formulation, approval and execution of district development plans

• to mobilise resources for governance and development

• to maintain peace and security in conjunction with the Malawi Police Service;

• to make by-laws for good governance

• to appoint, develop, promote and discipline its staff

• to perform other functions, including the registration of birth and deaths and to participate in the delivery of essential local services.

Lastly, sector devolution is another reform measure being implemented in all local authorities. According to Kutengule et al. (2004: 33), sector devolution is a means of consolidating democracy at the local level by ensuring that available resources are used efficiently and effectively, with the involvement of the people. The process entails a phased approach of devolving functions from sectors (line ministry departments operating at the local level) to local authorities. The sectors involved are education, science and technology, water development, gender, youth and community services, natural resources and environmental affairs, housing, health and population, agriculture, commerce and industry, lands, valuation and surveys and transport and public works. However, the actual implementation of sector devolution plans tends to be problematic. For example, although the Office of the President and Cabinet (OPC) issued a directive requiring the sectors to devolve at least by 1 January 2004, most sectors hardly had their sector devolution plans ready by that time and some line ministries continue to show reluctance to devolve their functions to local authorities (Kutengule et al., 2004: 34). The major contributing factors to the slow pace are the lack of capacity to implement the decentralisation programmes, both at the central and local government levels, fear of loss of power, and lack of awareness of the sector devolution process (GOM, 2001: 5–9). Clearly, capacity building issues need to be pragmatically addressed in order to ensure effective performance and achievement of the decentralisation policy objectives.

4. Capacity challenges in the context of local government reform

This analysis, however, pays attention to three major functional areas, namely, administrative, technical and economic capacity – administrative capacity is interpreted as the ability of an administrative structure and its human resources to implement policies professionally; technical capacity emphasises the technical expertise, and involves a level of education, skills and knowledge required to make and implement technical decisions effectively; and economic capacity is concerned with harnessing organisational resources, particularly finances, to ensure organisational effectiveness (Boeninger, 1992: 268; Boachie-Danquah, 2000: 61).

Overall, capacity building in the context of local government reform and decentralisation in Malawi entails improving the ability of local government institutions, such as local authorities and national training institutions; developing public officers' skills and competencies; and ensuring finances are available to achieve decentralisation policy objectives. In view of the expanded responsibilities assigned to local government institutions, various capacity building programmes are initiated with donor agencies' technical and financial assistance. The programmes include institutional building; that is, putting financial and planning structures in place, training personnel and providing equipment and basic civic education to enable stakeholders to participate actively in local affairs (GOM, 2001: 43–4). However, these programmes do not adequately address the inherent capacity building challenges, particularly the short-term and long-term human resource needs, and the chronic financial shortages in local government. With capacity building challenges in mind, the following section pays attention to the causes and consequences of inadequate human resources, the lack of appropriate technical skills and qualifications and the shortage of funds in local government institutions.

4.1 Inadequate human resources

The shortage of human resources and the negative impact of this on the attainment of decentralisation objectives are evident in the key local government institutions. For example, Kamanga et al. (2000: 43) confirm that 240 posts of a total establishment of 1058 in the Ministry of Local Government and Rural Development are vacant and, as a result, effective management of the decentralisation process is hampered. This is evident in the poor quality of public service delivery, the ineffective coordination and communication between the ministry and local authorities, and the slow progress in implementing the decentralisation policy (Kamanga et al., 2000: 28). Similarly, on one hand, Kutengule et al. (2004: 48, 50) point out that ‘almost half of LASCOM's positions are vacant, and the existing personnel including its Commissioners are inadequately trained for their jobs’. On the other hand, the NLGFC is short of professionals, since seven of 12 professional posts are vacant. The shortage of personnel is, however, pronounced in local authorities. For example, of 27 districts visited, one did not have a District Commissioner, 11 did not have Directors of Planning and Development, 13 did not have Directors of Finance, one did not have a Director of Administration and 14 did not have data clerks (Hussein, 2003: 53).

Two major interventions, namely secondment of staff and internal transfers, are implemented to meet the short- to medium-term human resource capacity gaps (GOM, 2001: 46). First, the secondment of staff involves central government allocating personnel from the mainstream civil service to the local government sector on loan. However, this intervention is not reliable because of the prevailing chronic human resource shortages. Furthermore, commitment of the seconded staff tends to be undermined since they exhibit split loyalty – ‘operational loyalty’ is given to the local institutions where they actually work, while ‘career loyalty’ is given to the central government, which determines their promotion and career advancement. The internal transfers involve movement of staff at senior levels within the local government sector in order to address personnel instability. However, in practice such transfers are received with mixed reactions and their impact on the desired performance is debatable. The transfers tend to disregard institutional and personnel needs, since they are often implemented without consultation with the institutions and individuals concerned. Furthermore, staff transfers are perceived by public officers to be politically motivated and abusive, leading to the loss of continuity and institutional memory as well as frustration among staff (GOM, 2001: 47).

Despite implementing the interventions discussed above, a combination of factors contributes to the prevailing shortage of personnel in local government. These include local government's inability to attract and retain staff members (due to poor conditions of service), non-responsive human resource policies, and a high attrition rate through resignations and deaths attributed to the impact of HIV/AIDS. The appalling working conditions for most local authorities, evident in poor housing, meagre salaries and inadequate facilities (such as computers, vehicles and telephones that are usually not working because of failure to settle bills), are major factors that discourage young graduate and qualified personnel from joining the local government sector (Kutengule et al., 2004: 51).

It must be pointed out that inadequate human resources in terms of numbers and skills and competencies create problems in various local government functional areas. For example, local authority officers in the finance section are unable to fulfil the statutory requirement to submit monthly and quarterly financial reports to the Finance Committee, the District Assembly Committee, the NLGFC and the Ministry of Local Government and Rural Development due to inadequate personnel, lack of skills and work overload. Furthermore, the dilapidated infrastructure and poor service delivery, ineffective resource mobilisation and utilisation, poor sanitation, potholes in the roads, heaps of garbage in cities and towns and the lack of toilets in markets are attributed to inadequate personnel and the lack of appropriate skills in local government institutions. Apparently, the available public officials seem not to be able to cope with the demands of the new decentralised system of local government (Kutengule et al., 2004: 60).

4.2 Shortage of technical skills and appropriate competencies

As indicated above, a lack of adequately skilled and qualified human resources is prevalent in local government. Of great concern, however, is the shortage of well-trained and qualified personnel in the Ministry of Local Government and Rural Development and in almost all local authorities in the country. The Ministry of Local Government and Rural Development is the fulcrum of local government reform and the decentralisation process. It requires adequate and appropriately trained personnel and material resources to effectively implement the reform programme. However, the existing staff profiles reveal considerable deficiencies in skills, knowledge and the professional qualifications relevant to decentralisation and development management. According to Kamanga et al. (2000: 57), senior personnel in the Ministry lack skills in areas such as strategic management, change management, financial management and development planning. Regarding LASCOM, hardly any training or orientation has been organised for its staff, which is drawn mainly from retired civil servants. Currently, LASCOM is facing difficulties in adjusting to the new demands of managing human resources. Its performance is characterised by ‘unacceptable delays is processing cases of appointments, promotion and discipline’ (Kamanga et al., 2000: 57). Similarly, performance by the NLGFC is undermined since only two of the five members of staff available have had some access to training (Kutengule et al., 2004: 50).

A survey of local authorities reveals a serious lack of appropriate skills and qualifications to ensure effective management. Schroeder (1998: 14), for example, points out that in most local authorities the personnel managing accounts and finances do not possess the requisite qualifications. Similarly, the World Bank (2003: 41) confirms that internal audit departments suffer from a lack of qualified personnel, since those with appropriate qualifications often leave for better paying jobs in the private and parastatal sector. Consequently, record management is generally weak, and only manual records are generally in place. In addition, internal controls and formal recording systems are undermined by the weak administrative back-up, the lack of appropriate skill, and ineffective training activities. Furthermore, the shortage of skills in planning and development management has resulted in failure to develop plans and to involve the community in the decision-making process (UNDP, 2000: 126). The former Minister of Local Government and Rural Development, Salim Bagus lamented: ‘It saddens me to note that no Assembly has developed a plan which states the vision of the Assembly in terms of development’ (quoted in Malawi News, 19 February 2004). Clearly, effective capacity building measures are required to ensure production of accurate financial reports in time, as well as sound interpretation of financial data and budgets. It must be mentioned that skills deficiencies are evident not only among appointed personnel but also among elected representatives, particularly ward councillors. Since the advent of multiparty democracy, councillors have not been exposed to systematic training to elaborate on their role in the new system of local government. Overall, councillors are poorly educated and have difficulty understanding policy issues and aggregating local interest into meaningful plans.

Furthermore, although the government, with the support of non-government organisations and donor agencies, has undertaken capacity building measures such as training and civic education programmes for appointed officials, skills and competency deficiencies are perpetuated by ineffective human resource management practices and the absence of a comprehensive training policy. Although training is at the heart of any capacity building process, local government training is uncoordinated, fragmented and not based on an intensive training needs analysis (GOM, 2001: 46). Hence, public officials are not fully aware of the key demands and implications of the devolution process. Consequently, the implementation of the decentralisation programme, public service delivery and achievement of performance targets are hampered by the lack of expertise.

4.3 Financial constraints

A major challenge to effective performance by local government institutions is, however, the chronic financial shortages. For instance, despite the existence of four major sources of revenue for local authorities, namely central government transfers, locally generated revenue, donor aid and loans, these authorities are characterised by unpredictable and erratic grants, a narrow resource base for locally generated revenue and failure to effectively mobilise and utilise financial resources. The shortage of financial resources is compounded by central government's control of the key taxable resources and the absence of adequate administrative and technical capacity in local authorities. The central government controls business, motor vehicle registration, business licences and customs, which deprives local authorities of lucrative sources of revenue (Mwadiwa et al., 2004: 28). Furthermore, the central government has not fulfilled its statutory obligation to transfer 5 per cent of the net national revenue to local government. Consequently, local authorities are unable to grow, maintain existing services, promote democratic governance and development and acquire capital. Under such circumstances, it is difficult to attract, retain and motivate qualified staff and ensure effective public service delivery.

5. Conclusion and recommendations

The major lesson provided by the Malawi scenario is that effective decentralisation and local government reform are contingent not only upon structural changes but also on the available capacity in terms of infrastructure (office equipment), quality and quantity of human resources and financial resources. Clearly, functions and responsibilities devolved to local institutions should be commensurate with the available resources, and there is a need for policy makers to pay attention to effective capacity building programmes in order to ensure provision of tangible development projects and quality services. It is therefore recommended that government and donors should, as a matter of urgency, assist in developing human, physical and financial resources to ensure the availability of the required infrastructure, adequate office equipment and communication facilities in local government institutions.

Another important aspect is that effective use of trained and qualified staff is crucial in determining the success of local government reform. It is clear that local authorities require adequate capacity and new administrative skills and approaches, in order to fulfil their responsibilities effectively. Therefore, training and development of human resources should be regarded as key elements for effective capacity building. In this regard, a clear training and development policy should be formulated for the local government sector. Furthermore, a Local Government Training Board, with membership drawn from institutions and non-governmental organisations involved in training local government personnel, should be formed to coordinate their efforts. This board should undertake a comprehensive training needs analysis and develop a curriculum which tackles key areas of concern. Furthermore, the University of Malawi should offer advanced courses in areas such as local government and administration, policy analysis and implementation, financial management, change management and good governance principles. In addition, non-governmental institutions should provide civic education programmes to educate the public on the role of local government in a democracy.

Lastly, the success of Malawi's local government reform will be determined largely by the availability of adequate funds. Therefore, there is a need for financial support to enable local government institutions to offer quality services. Thus, central government should ensure that grants are disbursed in time, while local authorities should intensify revenue mobilisation. In addition, effective financial control systems should be enforced to ensure prudent use of available resources. To sum up, effective measures aimed at building administrative, technical, and financial capacity have great potential to enable local government institutions, particularly local authorities, to efficiently and effectively attain the decentralisation policy objectives.