Baseline Study for Armenia Local Government Program

K:\IAC\AGreer\SHARE\6901-LGA Task Orders\To_008 Armenia LGA\Products\Baseline Study\baseline_study.doc BASELINE STUDY FOR ARMENIA LOCAL GOVERNMENT PROGRAM Prepared for Armenia Local Government Program U.S. Agency for International Development/Armenia Contract No. EEU-I-99-00015-00, Task Order 807 Prepared by John V. Doane Malcolm Simpson Carol S. Rabenhorst The Urban Institute THE URBAN INSTITUTE 2100 M Street, NW Washington, DC 20037 (202) 833-7200 www.urban.org March 2000 UI Project 06901-008 TABLE OF CONTENTS BASELINE STUDY FOR ARMENIA LOCAL GOVERNMENT PROGRAM—ABSTRACT I. EXECUTIVE SUMMARY.........................................................................................................i II. INTRODUCTION....................................................................................................................6 III. METHODOLOGY...................................................................................................................6 A. Administrative Relationships Among Marzes, LGUs (Cities, Villages, Communities) and State.................................................................................................7 B. Status of and Plans for Decentralization......................................................................10 C. Regulation of Basic Services by Local Governments..................................................18 D. Resource Allocation and its Effects on the Delivery of Basic Services.......................25 E. Effectiveness of Municipal Associations.......................................................................29 F. Transparency of Local Government Processes...........................................................32 G. Citizen Understanding of and Satisfaction with Local Government.............................36 H. Structures and Processes for Citizen Access to Public Information............................48 I. Identification and Evaluation of Projects Jointly Promoted by Local Governments and Community Members......................................................................50 J. Effectiveness of Condominium Associations and Their Relationship with Local Government Practice...................................................................................55 IV. KEY FINDINGS....................................................................................................................63 VI. CONCLUSION.....................................................................................................................76 VII. APPENDICES......................................................................................................................77 Appendix A—Glossary of Terms Appendix B—Resources Consulted BASELINE STUDY FOR ARMENIA LOCAL GOVERNMENT PROGRAM—ABSTRACT Conducted at the outset of UI’s Local Government Program in Armenia, to determine the status of local government reform and to support design of a 3-year technical assistance program. Findings cover fiscal and administrative decentralization, service delivery and citizen participation, and confirm that local government remains weak and largely ineffective. Causes include an ambiguous legal framework, inadequate authority and revenue to deliver basic services and lack of citizen interest in local governance. The study includes preliminary recommendations to address these problems; detailed recommendations and workplan are found in the subsequent Implementation Plan. I. EXECUTIVE SUMMARY Background The Urban Institute (UI) and the United States Agency for International Development (USAID) executed a Task Order providing for technical assistance to local governments in Armenia. The first deliverable document required pursuant to that Task Order is a Baseline Study to determine how far Armenia has progressed in local government reform. Approach Promptly following the issuance of the Task Order, the UI commenced the Baseline study by engaging local professionals with technical expertise in the various elements of the study. UI staff reviewed statutes, documents, and other USAID reports and worked closely with the local consultants to clarify issues. This Baseline Study is a composite of the work performed by expatriate staff and local consultants. Findings The conceptual and legal framework for local government was established in Armenia just four years ago. After more than three generations of tight central government control under the Soviet system, the fact that there is local government here at all is a substantial accomplishment. While much work has been done to implement a comprehensive agenda of government decentralization and reform, there are a number of areas that need significant improvement before true self-governme