Decentralization In Madagascar: A World Bank Country Study by World Bank

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In order to measure the equity dimensions of the distribution of allocations, recurrent deconcentrated expenditures have been matched with indicators of welfare across different geographic administrative units. To this end, a spatial description of the distribution of poverty was carried out in Madagascar by combining the 1993 sample survey data (Enquête Permanente des Ménages) and 1993 census unit records. On the expenditure side, given that only recurrent non-salary expenditures are deconcentrated down to the district level for the social sectors, one can rely on complementary administrative data on personnel allocations to obtain an overall picture of the total recurrent budget allocated to different geographical areas.

Transfers are needed to bridge the subnational fiscal gap and ensure that local and provincial governments can function and deliver an increasing range of public services. Across sub-Saharan Africa, transfers account for the overwhelming share of subnational revenues—while a few urban governments can contribute significantly to their cities’ expenditures, most rural communes and provincial entities are unable to finance even a small fraction of their expenditure needs out of own sources. In theory, other fiscal tools such as tax sharing and subnational borrowing are available to close the subnational fiscal gap.

Communes and regions were considered sub-units of the provinces, and accordingly the provinces were charged with defining control functions for subprovincial governments. Now, the de facto destitution of the provinces has halted these legal reform initiatives and created a vacuum in the reform of the control framework. Vertical control. Like in many other countries with ongoing decentralization reforms, vertical control mechanisms have been weakened by the creation of communes and provincial governments.

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