The New Nation - Internet Edition

NATION BUSINESS REPORT

The Local Governance Support Project (LGSP) is incrementally strengthening local governance and providing expanded block grants. Last year, 1060 Union Parishads (UP) recieved the block grant of nearly $18 million. The World Bank is supporting the Bangladesh government through LGSP to develop accountable and inclusive local governance providing services that meet community priorities. Local Government Division of Ministry of Local Government, Rural Development and Cooperatives is implementing the project that had started in 2006.

LGSP provides expanded Block Grant directly to UPs given that they receive unqualified audits annually and take specific steps in improving the transparency of their budgeting and expenditure process, and involve communities in decision making and reviewing their performance.

Less than two percent of total public spending flows towards the delivery of local services, with the bulk of resources provided on a highly conditional basis. The 4484 UPs in rural areas have a highly limited degree of authority over a far smaller level of resources. Strengthening local governance through community participation and oversight has been identified as an important element of the Government of Bangladesh's (GoB) Poverty Reduction Strategy Paper (PRSP).

Under LGSP, about 10,000 village community groups were mobilized who have prepared budget with their own local governments and implemented over 10,000 community schemes. With increased funds and enhanced skills and management capacity, UPs and communities have built and rehabilitated community infrastructure, especially those destroyed by the twin disasters - Flood and SIDR 2007. These community infrastructure proved to be key to increased income and well being through improving mobility of people, and enhancing access to services, markets and information,

In 2008, 2257 UPs are audited and those receiving clean audits will get nearly $50 million expanded block grants. Within the next three years, it is expected that LGSP will cover all the 4498 UP. The government reiterated its long term vision and commitment to strengthen UPs to help them become the foundation of good local governance.

Recently a World Bank team reviewed progress of the project implementation and noted that the government had made good progress in strengthening its implementation process for the project. However, considerable work is yet to be done to ensure that citizens and stakeholders are informed about the program. Also it is important to impart necessary training to all UP functionaries. Government is taking necessary steps to provide capacity building training to the 2257 UPs. IEC campaign has been launched to enhance community awareness and improve transparency and accountability of UPs to citizens.