Report No. 63786-SD Republic of South Sudan: Issues in Urban Development Phase 1 – An Overview of the Urban Landscape in South Sudan Final Report, November 2011 Urban and Water Unit Sustainable Development Department Africa Region Acknowledgements This paper was prepared by Zara Sarzin and Barjor Mehta, and draws substantially on a background paper prepared for the World Bank by Dr. Gamal Hamid, Deputy Dean and Head of the Planning and Urban Design Department, Faculty of Architecture, University of Khartoum, Sudan. The authors received valuable advice and comments from a World Bank peer review committee consisting of Christine Kessides (ECSS6), Sylvie Debomy (LCSUW), and Sanjeev Ahluwalia (AFTPR). The authors also wish to thank the following World Bank colleagues for providing assistance, helpful comments and contributions: Ian Bannon (AFTCS), Laura Kullenberg (AFMJB), Greg Toulmin (AFCET), Bill Bataille, Gabriel Demombynes (AFTP2), Anand Rajaram, Rupert Bladon, Nataliya Bugayova (AFTPR), Jack W. Van Holst Pellekaan (IEGCR), Jeeva Perumalpillai-Essex (EASTS), Jaime Biderman (IEGCS), Junaid Kamal Ahmad, Alex Bakalian, Roland White, Tesfaye Bekalu, Solomon Alemu, Gunther Gutknecht, Jerry Chen, Marie Claire Li-Tin-Yue, Carolina Dominguez (AFTUW), Tatiana Sviridova, Michael Lokshin (DECPI), Asif Faiz (SASDT), George Banjo (ECSS5), Nouma Dione (CICAF), Negede Lewi, Tesfamichael Mitiku, Mohamed Beshir (AFTTR), Mohamed Osman Hussein (AFTAR), Maisoun Badawi (AFTFE) and Akwii Anne Kennox (AFMJB). 2 Contents Acronyms and Abbreviations ..................................................................................................................... 6 I. Introduction ......................................................................................................................................... 7 II. Urbanization in South Sudan ........................................................................................................... 8 A. Contemporary Demographic and Urbanization Trends ............................................................... 8 B. Population Growth in Juba......................................................................................................... 17 C. The Urban Profile: Poverty and Access to Services in Urban Areas ......................................... 18 D. Economic Contribution of Urban Areas .................................................................................... 27 E. Policy Implications .................................................................................................................... 28 III. Legal and Institutional Composition of Urban areas ..................................................................... 32 A. Constitutional and Legal Basis for Local Government.............................................................. 32 B. Roles and Responsibilities for Service Delivery ....................................................................... 38 C. Local Government Financing .................................................................................................... 44 D. Urban Land and Housing ........................................................................................................... 45 E. Policy Implications .................................................................................................................... 47 IV. Conclusions and Recommendations .............................................................................................. 50 A. Priorities for the Urban and Local Government Sector ............................................................. 50 B. Options for Future World Bank Engagement ............................................................................ 53 ANNEX A: Juba Case Study .................................................................................................................... 57 A. Population Growth ..................................................................................................................... 57 B. Institutional Arrangements......................................................................................................... 58 C. Land, Housing and Urban Planning ........................................................................................... 59 D. State of Urban Infrastructure ..................................................................................................... 61 E. Municipal Finance ..................................................................................................................... 63 Works Cited .............................................................................................................................................. 64 3 Tables Table 1: Population Density—Sudan, Sub-Saharan Africa and Africa ...................................................... 8 Table 2: Population, Population Growth Rate and Population Density by State........................................ 9 Table 3: Agglomeration, Urbanization and GDP Per Capita in Selected Countries ................................ 11 Table 4: Population Growth and Intercensal Growth Rates ..................................................................... 12 Table 5: Urban Population Growth ........................................................................................................... 12 Table 6: Urbanization Rates by State........................................................................................................ 13 Table 7: City Population and Population Growth Rates ........................................................................... 15 Table 8: Components of Urban Population Growth in South Sudan and Sudan ...................................... 15 Table 9: Population Growth in Juba ......................................................................................................... 17 Table 10: A Framework for Urbanization Policies ................................................................................... 30 Table 11: Grading of LGCs ...................................................................................................................... 36 Table 12: Constitutional Powers and Functions of National and State Governments .............................. 39 Table 13: Population Growth in Juba ....................................................................................................... 58 Table 14: Allocation of Responsibilities for Service Delivery in Juba .................................................... 59 Table 15: State of Urban Infrastructure in Juba ........................................................................................ 61 Table 16: Real Estate Taxes in Juba ......................................................................................................... 63 Boxes Box 1: Density and Economic Growth ..................................................................................................... 10 Box 2: Chronology of Constitutional and Legislative Developments Shaping the Local Government System in Sudan ........................................................................................................................................ 32 Box 3: Supporting Local Governance in Sierra Leone ............................................................................. 56 Figures Figure 1: Population Density by State and County ..................................................................................... 9 Figure 2: Urbanization and economic growth .......................................................................................... 10 Figure 3: Urban Population Growth ......................................................................................................... 13 Figure 4: South Sudan Urban Hierarchy (Counties above 50,000) .......................................................... 14 Figure 5: Consumption per person per month (SDG) ............................................................................... 18 Figure 6: Consumption per person per month (share in %) ...................................................................... 19 Figure 7: Poverty Incidence (% of total population) ................................................................................ 19 Figure 8: Main Source of Livelihood (percentage population) ................................................................ 20 Figure 9: Main Source of Livelihood—Poor vs. Non Poor (percentage population) ............................... 20 Figure 10: Access to Improved Drinking Water (percentage population) ................................................ 21 Figure 11: Time to Water Source (minutes) ............................................................................................. 22 Figure 12: Main Type of Toilet Facility (percentage population) ............................................................ 22 Figure 13: Solid Waste Disposal Methods (percentage population) ........................................................ 23 Figure 14: Energy Source for Lighting (percentage population) .............................................................. 23 Figure 15: Energy Source for Cooking (percentage population) .............................................................. 24 Figure 16: Housing Characteristics (percentage population).................................................................... 24 Figure 17: Tenure Status (percentage population) .................................................................................... 25 Figure 18: Literacy Rate (percentage population) .................................................................................... 25 Figure 19: Literacy Rates—Poor and Non Poor (percentage population) ................................................ 26 Figure 20: School Attendance (percentage population)............................................................................ 26 Figure 21: GDP Growth by Sector (North and South) ............................................................................. 27 4 Figure 22: Local Government Structure ................................................................................................... 36 Figure 23: Institutional Arrangements in Juba.......................................................................................... 58 5 ACRONYMS AND ABBREVIATIONS CES Central Equatoria State CPA Comprehensive Peace Agreement GDP Gross Domestic Product GoSL Government of Sierra Leone GoSS Government of South Sudan ICSS Interim Constitution for Southern Sudan IDP Internal Displaced Person/People LGC Local Government Council MDTF Multi-Donor Trust Fund SDG Sudanese Pound SPLA Sudan People‘s Liberation Army SPLM Sudan People's Liberation Movement SSFFAMC Southern Sudan Fiscal and Financial Allocation and Monitoring Commission 6 I. INTRODUCTION 1. This study responds to the need for information and analysis on the urban sector in South Sudan, to inform the Bank‘s policy dialogue with the Government of the Republic of South Sudan (GoSS) on urban and local government issues, and to inform the design of future Bank assistance. Despite the growing demographic weight of urban areas in South Sudan and the importance of local government as a platform for service delivery, there is fragmented knowledge of the urban sector in South Sudan. In this context, the Bank initiated an exercise to begin to document the key issues in urban and local government development and to identify critical challenges and opportunities presented by urbanization in South Sudan. This work seeks to answer questions such as: What are the urban demographics trends? What is the situation with regard to urban infrastructure and services? What are the legal and institutional arrangements for local government? How could local government be better supported to enhance service delivery and respond adequately to the challenges posed by urbanization? 2. The first phase of this analytical exercise, which is the focus of this report, develops an overview of the urban landscape. A second phase of this analytical work is planned, that will build on the findings emerging from this first phase. The report is structured as follows: Section II describes the evolution of the spatial system in South Sudan and highlights key urbanization patterns and trends; Section III provides an overview of the legal, institutional and financial composition of South Sudan‘s urban areas; and Section IV outlines the key policy issues and recommendations. The report also draws on an in-depth case study of Juba, which is included as an Annex to the report. 3. The depth of analysis is limited by the scarcity of accessible, reliable, and comprehensive data on the urban sector. Some detailed data was obtained from the 2009 National Baseline Housing Survey, from which urban and rural profiles of households were prepared. However, it was not possible to obtain detailed data from the 2008 census, which would have enabled a more thorough, quantitative analysis of demographic trends. Rather, analysis was limited to an examination of summary data (―priority tables‖) from the census, the results of which have been challenged by many researchers and population experts. Moreover, the data from the Juba case study was scanty, particularly on municipal budgets and plans. Further field work would be required to arrive at robust estimates of the share of national expenditures at national, state and locality level, the level of fiscal transfers and own source revenues, and the allocation of local expenditures; this report provides only a descriptive overview of key issues pertaining to municipal planning and finances. 7 II. URBANIZATION IN SOUTH SUDAN A. Contemporary Demographic and Urbanization Trends 4. South Sudan‘s population density is relatively low compared to other countries in the region. With a population of 8.3 million people in 2008 (Central Bureau of Statistics 2009) spread over a relatively large territory, South Sudan has a low population density of about 13 people per square kilometer implying high costs for service delivery, compared to 36 people per square kilometer for Sub- Saharan Africa, which is in turn low compared to other regions (Table 1). The population is not uniformly distributed, with the highest population densities in Central Equatoria, Warrap and Northern Bahr-El-Ghazal states (Table 2 and Figure 1). Empirical evidence shows that economic growth and density go together (Box 1) and South Sudan can overcome its low population density through agglomeration, which has potential benefits for both urban and rural residents. Table 1: Population Density—Sudan, Sub-Saharan Africa and Africa Estimated Population Population Density (population per sq. km) (thousands) Sudan Sub-Saharan Africa Year [1] [2] [3] Africa 1950 9,190 4 8 7 1955 10,333 4 8 8 1960 11,683 5 9 9 1965 13,214 5 11 11 1970 15,039 6 12 12 1975 17,493 7 14 14 1980 20,509 8 16 16 1985 24,052 10 19 18 1990 27,091 11 21 21 1995 30,841 12 24 24 2000 34,904 14 28 27 2005 38,698 15 31 30 2010 43,192 17 36 34 2015 47,730 19 40 38 2020 52,309 21 45 42 2025 56,688 23 49 46 2030 60,995 24 54 50 2035 65,129 26 59 54 2040 69,018 28 63 58 2045 72,613 29 68 62 2050 75,884 30 72 66 Note: [1] Estimates as of 2008; [2] Figures include both Sudan and South Sudan; [3] Excludes North African Countries (i.e. Morocco, Algeria, Libya, Tunisia, Egypt and Djibouti) Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2008 Revision, http://esa.un.org/unpp. 8 Table 2: Population, Population Growth Rate and Population Density by State Annual Density State 1993 Census 2008 Census Growth (%) Area (km2) (people/km2) Central Equatoria - 1,103,592 - 22,956 48 Warrap - 972,928 - 31,027 31 Northern Bahr-El-Ghazal - 720,898 - 33,558 21 Lakes - 695,730 - 40,235 17 Unity - 585,801 - 35,956 16 Upper Nile - 964,353 - 77,773 12 Jonglei - 1,358,602 - 122,479 11 Eastern Equatoria - 906,126 - 82,542 11 Western Equatoria - 619,029 - 79,319 8 Western Bahr-El-Ghazal - 333,431 - 93,900 4 Total South Sudan 4,321,000 8,260,490 4% 619,745 13 Source: 2008 Priority Census Tables, Statistical Yearbook for Southern Sudan 2010, Thomas Brinkhoff: City Population, http://www.citypopulation.de Figure 1: Population Density by State and County 9 Box 1: Density and Economic Growth The World Development Report of 2009 (Reshaping Economic Geography) suggests that the Africa region can overcome its spatial limitations and low density ―by using its land and people well and by concentrating resources in urban agglomerations‖ (World Bank 2009). The report goes further, arguing that no developed country has reached their current per capita income without a structural transformation of its economy from agriculture to non-agricultural industry to services and without urbanization and vibrant cities. Two hundred years of history of developed countries and empirical evidence demonstrate that economic growth and density go together, with the level of urbanization correlated with the level of development (Figure 2 and Table 3).1 Experience suggests that economic growth through agglomeration will be unbalanced, with production and employment concentrated in selected regions and cities that are favorable to markets. To try to stop concentration of production or to spread out economic activity undermines economic growth. However development can still be inclusive—―even people who start their lives far away from economic opportunity can benefit from the growing concentration of wealth in a few places.‖ Research shows that rural areas benefit from their proximity and connections to urban areas, so investments in infrastructure that connects rural and urban areas (transport and communications infrastructure) is essential. In other words, the way to get both the benefits of uneven growth and inclusive development is through economic integration. While economic production concentrates, living conditions converge, and policies can speed up the convergence in basic living standards, ―so that people in the least-fortunate places do not have to wait for basic public amenities until their nations reach high income levels.‖ Empirical evidence suggests that convergence occurs first in terms of household consumption, then in terms of social services, then in terms of income. Figure 2: Urbanization and economic growth 0.60 3,000 0.50 2,500 Urbanization Rate 0.40 2,000 0.36 GDP (PPP) 0.30 1,506 1,500 0.20 1,000 0.10 500 0.00 - Guinea Madagascar Senegal Malawi Sudan Togo Ghana Angola Kenya Benin Cameroon Cote-d'Ivoire Burundi Rwanda Niger Nigeria Gambia Burkina Faso Uganda Zambia Mauritania Tanzania Ethiopia Mozambique Zimbabwe Urbanization (2000) GDP (PPP) (2000) Linear (GDP (PPP) (2000)) Source: The Urban Transition in Mainland Tanzania (World Bank 2009) 1 However the annual growth of the urban population is not closely correlated with the annual economic growth, since urbanization often proceeds even in periods of economic stagnation or decline. 10 Table 3: Agglomeration, Urbanization and GDP Per Capita in Selected Countries Urbanization (Percentage of Population in Agglomeration GDP (Constant Urban Areas) Index US$) GDP (PPP) Burundi 0.09 0.18 109 650 Uganda 0.12 0.25 244 1,167 Rwanda 0.14 0.11 226 931 Malawi 0.15 0.18 151 583 Ethiopia 0.15 0.11 122 814 Niger 0.16 0.16 153 678 Burkina Faso 0.17 0.14 230 986 Kenya 0.20 0.27 414 1,033 Tanzania 0.22 0.26 261 524 Madagascar 0.26 0.18 239 843 Guinea 0.31 0.25 369 1974 Mozambique 0.31 0.25 211 799 Zimbabwe 0.34 0.33 587 2,498 Zambia 0.35 0.30 303 785 South Sudan and Sudan 0.36 0.31 376 1,506 Togo 0.37 0.31 248 1,358 Benin 0.38 0.36 313 974 Mauritania 0.40 0.27 409 1,894 Senegal 0.41 0.48 424 1,427 Cote-d'Ivoire 0.43 0.37 622 1582 Nigeria 0.44 0.43 391 854 Ghana 0.44 0.37 250 1,920 Gambia, The 0.49 0.46 320 1,631 Cameroon 0.50 0.41 678 1,877 Angola 0.50 0.27 660 1,462 Note: Figures as of 2000. The agglomeration index (AI) is based on population density (more than 150 people per square kilometer), the size of the population in a ‗large‘ urban centre (more than 50,000), and travel time to that urban centre. GDP= Gross Domestic Product; PPP= Power Purchase Parity. Source: The Urban Transition in Mainland Tanzania (World Bank 2009) 5. Consistent with trends across the Africa region, South Sudan and Sudan are rapidly urbanizing—the combined urban population will continue to grow at a rate twice that of the population as a whole. During the past decade, South Sudan and Sudan‘s combined urban population has grown at a rate of four percent per annum, compared with 2.8 percent per annum for the population as a whole (Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat 2009). According to census data, the urban population grew from only 8.3 percent of the total population (854,000 people) in 1955/56 to approximately 24.5 percent (6.3 million people) in 1993 and 43 percent (16.8 million people) in 2008 (Table 4). Urbanization in South Sudan and Sudan is expected to continue at a rapid rate—according to UN population projections the combined urban population is expected to continue to grow at more than twice the rate of the population as a whole, so that by 2030, it is estimated that 54.5 percent of the population, more than 33 million Sudanese, will be living in urban areas (Table 5 and Figure 3). The rapid rate of urbanization stands in contrast with the 11 rest of the North Africa sub-region2, where the majority of the population already lives in urban areas and where urbanization has largely subsided in the last decade (UN-HABITAT 2010, 3). Table 4: Population Growth and Intercensal Growth Rates Urban Total Urban Total Annual Annual Population Population Percentage Intercensal Growth Rate Growth Rate Census (thousands) (thousands) Urban Period (%) (%) 1955/56 10,263 854 8.3% 1973 14,819 2,606 17.6% 1955-73 2.13% 6.5% 1983 19,093 4,154 21.8% 1973-83 2.57% 4.7% 1993 25,588 6,275 24.5% 1983-93 2.88% 4.1% 2008 39,154 16,836 43% 1993-2008 2.84% 6.6% Note: Figures are for South Sudan and Sudan combined Source: 5th Sudan Population and Housing Census (2008); UN-HABITAT State of African Cities (2008). Table 5: Urban Population Growth Total Urban Rural Total Urban annual annual annual population population Percentage growth growth growth Year (thousands) (thousands) urban (%) Period rate (%) rate (%) rate (%) 1950 9,190 627 6.8 1955 10,333 887 8.6 1950-1955 2.34 6.93 1.96 1960 11,683 1,256 10.7 1955-1960 2.46 6.95 1.98 1965 13,214 1,767 13.4 1960-1965 2.46 6.84 1.87 1970 15,039 2,485 16.5 1965-1970 2.59 6.82 1.85 1975 17,493 3,314 18.9 1970-1975 3.02 5.76 2.44 1980 20,509 4,093 20.0 1975-1980 3.18 4.23 2.93 1985 24,052 5,380 22.4 1980-1985 3.19 5.47 2.58 1990 27,091 7,211 26.6 1985-1990 2.38 5.86 1.25 1995 30,841 9,393 30.5 1990-1995 2.59 5.29 1.52 2000 34,904 11,661 33.4 1995-2000 2.47 4.32 1.61 2005 38,698 14,128 36.5 2000-2005 2.06 3.84 1.11 2010 43,192 17,322 40.1 2005-2010 2.20 4.08 1.03 2015 47,730 20,889 43.8 2010-2015 2.00 3.74 0.74 2020 52,309 24,804 47.4 2015-2020 1.83 3.44 0.49 2025 56,688 28,924 51.0 2020-2025 1.61 3.07 0.19 2030 60,995 33,267 54.5 2025-2030 1.46 2.8 -0.03 2035 65,129 37,754 58.0 2030-2035 1.31 2.53 -0.26 2040 69,018 42,322 61.3 2035-2040 1.16 2.28 -0.5 2045 72,613 46,886 64.6 2040-2045 1.02 2.05 -0.74 2050 75,884 51,365 67.7 2045-2050 0.88 1.82 -0.96 Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2008 Revision and World Urbanization Prospects: The 2009 Revision, http://esa.un.org/wup2009/unup/. 2 Algeria, Egypt, the Libyan Arab Jamahiriya, Morocco, Sudan, Tunisia and Western Sahara. 12 Figure 3: Urban Population Growth 80,000 80 70,000 70 60,000 60 Population (thousands) 50,000 50 Percentage urban 40,000 40 30,000 30 20,000 20 10,000 10 - 0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Total population (thousands) Urban population (thousands) Percentage urban (%) 6. In South Sudan, 2008 census data indicates that 17 percent of the population is living in urban areas (about 1.4 million people). Most of the urban population is living in Central Equatoria State, and together Upper Nile and Central Equatoria states account for almost 50 percent of the urban population of South Sudan (Table 6). The counties that account for the largest numbers of urban residents include Juba (17 percent or 238,612 people) and Yei (7 percent or 93,978 people) in Central Equatoria State, Wau (8 percent or 118,393) in Western Bahr El Ghazal State, and Malakal (8 percent of 113,656 people) in Upper Nile State. Table 6: Urbanization Rates by State State Urban Population Total Population Urbanization Share of Urban Rate Population Northern Bahr El Ghazal 55,398 720,898 8% 4% Lakes 65,033 695,730 9% 5% Eastern Equatoria 80,420 906,161 9% 6% Warrap 84,887 972,928 9% 6% Western Equatoria 100,034 619,029 16% 7% Unity 120,790 585,801 21% 9% Jonglei 129,341 1,358,602 10% 9% Western Bahr El Ghazal 142,945 333,431 43% 10% Upper Nile 243,976 964,353 25% 17% Central Equatoria 382,362 1,103,557 35% 27% Total 1,405,186 8,260,490 17% 100% Source: 5th Sudan Population and Housing Census (2008) 13 7. South Sudan‘s urban hierarchy is characterized by one primate city, two cities with populations greater than 100,000 people, and a long tail of smaller urban areas. Figure 4 lists in order of size (from largest to smallest based on 2008 census data) the counties in South Sudan with an urban population over 50,000.3 Together these nine counties account for 62 percent of the total urban population of South Sudan. Figure 4: South Sudan Urban Hierarchy (Counties above 50,000) 300,000 250,000 200,000 150,000 100,000 50,000 - Source: 5th Sudan Population and Housing Census (2008) 8. Rates of urbanization in South Sudan are not geographically even, reflecting different regional drivers of urbanization and population displacement. The growth rate of Juba and Wau has been extremely rapid over the intercensal period at rates of 10.9 percent and 5.9 percent per annum respectively—a consequence of internal displacement to provincial capitals and garrison towns such as these during the civil war (many displaced people preferring to remain rather than return to their rural homes after the war) as well as an influx of migrants and returnees following the signing of the Comprehensive Peace Agreement (CPA). Juba‘s rapid growth is also a reflection of its growing political and economic importance as the seat of the Government of South Sudan and a hub for regional trade. Similarly high rates of growth are also evident in Malakal (5.6 percent). 3 The definition of an urban center adopted in the 1955/56, 1973 and 1983 censuses considers 5,000 people as the threshold beyond which a settlement is classified as urban. Smaller settlements are also considered urban if they assume administrative and service functions, often as state capitals or municipal centers in states that have small populations. 14 Table 7: City Population and Population Growth Rates Population from Census Intercensal Growth Rates City 1973 1983 1993 2008 1973-1983 1983-1993 1993-2008 Juba 56,737 84,377 125,000 372,413 4.0% 3.9% 10.9% Wau 52,750 58,008 84,000 151,320 1.0% 3.7% 5.9% Malakal 34,894 33,737 72,000 126,483 -0.3% 7.6% 5.6% Source: 2008 Priority Census Tables, Thomas Brinkhoff: City Population, http://www.citypopulation.de 9. Natural population increases account for the lion‘s share of urban population growth in South Sudan and Sudan. A common misperception is that rural-urban migration is the most significant driver of urbanization. Table 8 disaggregates urban population growth by three sources: (a) natural population increase among existing urban residents; (b) net migration; and (c) change of urban settlement boundaries (that is reclassification of formerly rural areas as urban). These figures show that while net migration is significant, the most significant driver of urban population growth is the natural increase of the population (births less deaths); natural population growth accounts for the majority of urban growth due to high fertility rates (6.4 children per mother in South Sudan and Sudan combined), net migration to urban areas accounts for close to 40 percent of urban growth while changes in urban boundaries make a relatively insignificant contribution to urban growth (about 5 percent). Migration to urban areas can be attributed to strong pull factors in urban areas such as the relative availability of jobs, services and security, coupled with the corresponding push factors in rural areas (lack of opportunities, services and insecurity). Further, research suggests that rural and urban boundaries are artificial distinctions to households in Africa, which often maintain footholds in both rural and urban environments by ―distributing members across different spatial and economic activities to diversify income sources and reduce risk‖ (Kessides 2006). Table 8: Components of Urban Population Growth in South Sudan and Sudan Intercensal Period 1955/56-1973 1973-1983 1983-1993 1993-2008 Natural Increase (%) 45 63 56 Net Migration (%) 37 32 39 Not Available Change of Urban Boundaries (%) 18 5 5 Total (%) 100 100 100 Note: Figures are as of 2009 and include both Sudan and South Sudan Source: Background Paper (Hamid 2009) 10. The war in South Sudan resulted in massive population displacements. After Sudan gained Independence in 1956, an armed conflict broke out between the North and South. This ended in 1972 but in 1983 a second wave of civil war began between the Khartoum government and the Sudan People‘s Liberation Army (SPLA). It was brought to an end by the CPA of January 2005, which paved the way for self-governance and autonomy in South Sudan. Urban areas in South Sudan experienced both inwards and outwards migration as a consequence of the war. During some intervals, rural households moved to urban areas for greater physical security and access to scarce food supplies and services, while at other times when urban areas were under attack, urban households migrated to neighboring countries and to the North (Wakely 2005). During the 1980s and 1990s the major cause of rural-urban migration was the war in South Sudan. It is estimated that more than four million people were displaced and more than 500,000 people took refuge in neighboring countries as a consequence of 15 the war in South Sudan4 (Norwegian Refugee Council 2005). Displacement has continued in South Sudan with over 390,000 people newly displaced in 2009 (twice as many as in 2008) and an estimated 268,000 people newly displaced in 2010 another (as of November 2010). Drivers of recent displacement include attacks by the Lord‘s Resistance Army, inter- and intra-tribal violence, conflicts between pastoralist communities, poor governance, the proliferation of firearms, land disputes between returning IDPs, refugees and residents, drought and food shortages (IDMC 2011). 11. Of the four million displaced during the conflict between North and South, over two million people are estimated to have returned to South Sudan, Abyei and Southern Kordofan by the end of 2009. However, it is estimated that about 10 percent of these returnees were displaced again (IDMC 2010). GoSS has encouraged returns to areas of origin, however many IDPs prefer to settle permanently in the urban areas to which they fled or to settle in other urban areas that promise better access to services and livelihoods (IDMC 2011). Government policy has so far failed to recognize that this is an inevitable process of urbanization; instead GoSS is promoting a policy of ―taking towns to the people.‖ 12. Conflict induced displacement has resulted in a distinct form of urbanization and has led to significant strains on infrastructure and services in the receiving urban areas. Unlike voluntary, lifetime migrants who often relocate their resources with them when they migrate, displaced people often flee their rural homelands and lose all their assets. Many IDPs have settled permanently in urban areas where they expect to find income-generating activities. Others continue to live in Internally Displaced People‘s (IDP) camps for decades and become dependent on intermittent relief assistance and donor-funded services. 4 By the end of 1999, it was estimated that there were over 420,000 refugees in neighboring countries (approximately 180,000 in Uganda; 70,000 in Ethiopia; 65,000 in Kenya; 50,000 in Congo; 35,000 in Central African Republic; 20,000 in Chad; and 3,000 in Egypt) (U.S. Committee for Refugees 2000: 1). 16 B. Population Growth in Juba 13. A case study of Juba was conducted to complement the broad analytical and descriptive coverage of urbanization trends in South Sudan. Drawing on interviews and supporting documentation, the case study highlights the most important challenges and the city‘s priorities, strategies and plans. Demographic data is summarized below (Table 10). Table 9: Population Growth in Juba Share of Urban Population Population Intercensal Growth Rate Census ('000) (%) Period (p.a.) 1955/56 11 1.3 [1] 1973 57 2.2 [1] 1955/56 – 1973 9.4% 1983 100 2.4 [1] 1973 – 1983 5.6% 1993 125 2.0 [1] 1983 – 1993 2.2% 2008 327 23.0 [2] 1993 – 2008 6.4% Notes: [1] Share of urban population in North and South Sudan combined; [2] Share of urban population in South Sudan. Source: Background Paper (Hamid 2009) 14. In the post independence period from 1955/56 until 1973, Juba experienced very rapid population growth. The intercensal period coincides with the first civil, during which Juba became a garrison town and headquarters for the Sudanese Army. Many people sought refuge in Juba, which was relatively safer than other areas. 15. Between the 1973 and 1983 censuses, population growth in Juba exceeded five percent. After the Addis Ababa Peace Accord of 1972, Juba was selected as the capital of the newly-created, semi-autonomous Southern Region and also continued to act as a provincial capital and district headquarters. Many refugees started to return to South Sudan—significant numbers choosing to settle in Juba. New government institutions were created and a program of reconstruction and rehabilitation was launched—this increased the attraction of Juba, with public sector employment accounting for a significant source of employment opportunities. 16. Between the 1983 and 1993 censuses, population growth slowed dramatically in Juba. This can be attributed to the resumption of the North South War in 1983, with Juba once again becoming a garrison town for the Sudanese army. As was the case with the previous conflict, many people fled the city to neighboring countries or to northern Sudan, while others were internally displaced to Juba from smaller towns and the countryside. Other factors that contributed to migration and displacement during this period include the 1983-4 drought and the forced depopulation of oil field areas in the South in the 1990s (Jacobsen 2008). 17. Between 1993 and 2008, the population of Juba grew rapidly. Since the signing of the CPA in 2005, the city functions as the seat of GoSS and the capital of the Central Equatoria State. An emergency program of rehabilitation of infrastructure, housing and institutions has been launched and many new government institutions were created. All of these developments have helped to fuel Juba‘s rapid growth. 17 C. The Urban Profile: Poverty and Access to Services in Urban Areas 18. With the increasing demographic and economic weight of South Sudan‘s urban areas it is helpful to develop a profile of the urban population and to understand how this contrasts with the profile of the rural population. The National Baseline Household Survey of 2009 provides some insight into relative poverty, sources of livelihoods, access to services, and social development indicators between urban and rural areas. The data reveals the extent to which there is an urban advantage in terms of access to services such as improved water supply, improved sanitation and solid waste services, electricity and housing quality. 19. Urban poverty rates in South Sudan are less than half those in rural areas. Average consumption levels in urban areas (SDG 168) are significantly higher than those in rural areas (SDG 88) (Figure 5). This corresponds with data on poverty incidence, with rural poverty rates more than twice urban poverty rates (55.4 versus 24.4 percent) (Figure 7). These statistics reveal a significant urban advantage (higher consumption levels, lower poverty), which is most likely due to: (a) better employment opportunities available in urban areas, which increase incomes and capacity to pay for services; as well as (b) high population densities which reduce the per capita costs of service delivery. There are significant differences in consumption patterns between urban and rural areas. Food accounts for 65 percent of consumption in urban areas but more than 80 percent in rural areas (Figure 6). Figure 5: Consumption per person per month (SDG) 200 180 Other 160 Recreation 140 Housing 120 Personal Care 100 Transportation Utilities 80 Clothing 60 Health 40 Education 20 Food 0 Urban Rural Total Source: National Baseline Household Survey (2009) 18 Figure 6: Consumption per person per month (share in %) Total Food Education Health Clothing Rural Utilities Transportation Personal Care Housing Urban Recreation Other 0% 20% 40% 60% 80% 100% Source: National Baseline Household Survey (2009) Figure 7: Poverty Incidence (% of total population) 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Urban Rural Total Incidence 24.4 55.4 50.6 Source: National Baseline Household Survey (2009) 20. The absolute numbers of urban poor are significant and likely to increase in line with urbanization trends. The numbers of urban poor are significant—with about one in four urban residents living below the poverty line. If poverty incidence rates remain static in urban areas, then as South Sudan continues to urbanize, the absolute numbers of urban poor will continue to increase. It could be easier to address poverty in urban areas, since higher population densities allow for more cost- effective expansion of infrastructure and services. However, physical proximity to social and infrastructure services does not necessarily guarantee the urban poor access to or affordability of services. 19 21. Urban and rural populations have widely different livelihood profiles. Urban residents are more involved in non-agricultural activities than rural residents (22 percent versus 86 percent). However, agricultural activities are not completely absent in urban areas, with one in five urban residents in South Sudan deriving their income from agriculture. Approximately half of urban residents derive their income from wages and salaries; and about 12 percent of urban residents are self employed. There are noticeable differences in livelihood profiles between the poor and non poor in both urban and rural areas (Figure 9). The poor are more likely to be engaged in agricultural activities, while the non poor are more likely to derive their income from wages and salaries. Figure 8: Main Source of Livelihood (percentage population) Total Rural Urban 0% 20% 40% 60% 80% 100% Agriculture Wages and salaries Owned business enterprises Other Source: National Baseline Household Survey (2009) Figure 9: Main Source of Livelihood—Poor vs. Non Poor (percentage population) Total Rural-Non Poor Rural-Poor Urban-Non Poor Urban-Poor 0% 20% 40% 60% 80% 100% Agriculture Wages and salaries Owned business enterprises Other Source: National Baseline Household Survey (2009) 20 22. Data reveals wide differences between urban and rural areas in access to improved drinking water, sanitation and solid waste collection services. On average urban residents benefit from better water services than those available in rural areas, although the differences are not stark (Figure 10). There are however more substantial differences between urban and rural areas in terms of the time taken to travel to a water source (Figure 11). There is a very substantial urban advantage when it comes to sanitation. Coverage of sanitation services is extremely low with 80 percent of the population having no toilet facilities. However there is still a clear urban advantage, with only 13 percent of rural residents but over 50 percent of the urban population having access to some kind of toilet facilities (Figure 12). With respect to solid waste disposal, there is no substantial urban advantage and access to collection services is universally low (Figure 13). Figure 10: Access to Improved Drinking Water (percentage population) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Urban Rural Total Improved Unimproved Source: National Baseline Household Survey (2009) 21 Figure 11: Time to Water Source (minutes) Total Rural Urban 0% 20% 40% 60% 80% 100% 0 1-9 10-29 30-59 60+ Source: National Baseline Household Survey (2009) Figure 12: Main Type of Toilet Facility (percentage population) Total Rural Urban 0% 20% 40% 60% 80% 100% Flush toilet Pit latrine Bucket No toilet facility Source: National Baseline Household Survey (2009) 22 Figure 13: Solid Waste Disposal Methods (percentage population) Total Rural Urban 0% 20% 40% 60% 80% 100% Collection Composting Dumping or burning Other Source: National Baseline Household Survey (2009) 23. There are wide differences between urban and rural areas in terms of electricity coverage. Access to electricity for lighting is negligible, but one in six urban residents benefits from an electricity connection (Figure 14). Figure 14: Energy Source for Lighting (percentage population) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Urban Rural Total Electricity Other No Lighting Source: National Baseline Household Survey (2009) 23 Figure 15: Energy Source for Cooking (percentage population) Total Rural Urban 0% 20% 40% 60% 80% 100% Firewood Charcoal Gas Other Source: National Baseline Household Survey (2009) 24. There are marked differences in housing quality and tenure status between urban and rural areas. Urban households benefit from better housing quality than rural households; 19 percent of the urban population lives in houses made of permanent materials compared with only four percent of the rural population (Figure 16). Whereas almost all rural households own their own homes, there is a significant proportion of the urban population that lives in rental properties (13 percent). Figure 16: Housing Characteristics (percentage population) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Urban Rural Total Permanent materials Non-permanent materials Incomplete Source: National Baseline Household Survey (2009) 24 Figure 17: Tenure Status (percentage population) Total Rural Urban 0% 20% 40% 60% 80% 100% Owned Rented Housing provided as part of work Free Source: National Baseline Household Survey (2009) 25. Urban residents also have a clear advantage in terms of human capital formation. The urban-rural gap is evident in terms of literacy rates (Figure 18) and school attendance indicators (Figure 20); 50 percent of the urban population is literate compared to about 25 percent of the rural population. However, literacy levels amongst the urban poor are only about 35 percent, much lower than the average for the urban population as a whole (Figure 19). Figure 18: Literacy Rate (percentage population) 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Urban Rural Total Source: National Baseline Household Survey (2009) 25 Figure 19: Literacy Rates—Poor and Non Poor (percentage population) 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Urban-Poor Urban-Non Rural-Poor Rural-Non Total Poor Poor Source: National Baseline Household Survey (2009) Figure 20: School Attendance (percentage population) 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 Urban Rural Total Source: National Baseline Household Survey (2009) 26 D. Economic Contribution of Urban Areas 26. Several factors help to explain South Sudan‘s economic performance and future prospects including insecurity and the importance of the oil sector. First, conflict, insecurity and political instability have resulted in massive destruction and displacement, and severely undermined the country‘s social and economic development. The signing of the CPA and independence presents a window of opportunity for South Sudan to reap a peace and independence dividend, and focus on future developmental and social priorities. Second, while the oil sector only contributes modestly to overall economic output, it has a significant impact on external and fiscal balances, accounting for about 93 percent of exports and 50 percent of domestic revenue in 2009 (for both North and South combined). 27. Despite these challenges, real growth in South Sudan and Sudan (combined) has been higher than most countries in the region. Real growth averaged over 7 percent during the past decade and non-oil real growth averaged 6 percent. The global financial crisis resulted in a sharp decline in oil receipts, and as a consequence economic growth fell to 4.5 percent in 2009 from 7 percent in 2008, with non-oil growth declining by half to about 5 percent (IMF 2010). Real GDP growth is projected to be in the 5-6 percent range during 2010–15, contingent on strong non-oil growth (oil output is projected to be moderate) and with a medium-term focus on increasing agricultural production (IMF 2010). Figure 21: GDP Growth by Sector (North and South) Source: IMF Country Report No. 10/256 28. While the agricultural sector remains important, it is industry and services—mainly based in urban areas—that account for the lion‘s share of GDP and GDP growth. The economic contribution of urban areas in South Sudan and Sudan can only be assessed indirectly since national accounts are not spatially disaggregated. A very rough approximation can be made from the contribution of industry and services, which are typically based in urban areas. For North and South Sudan combined, industry and services only account for roughly 20 percent of employment, but generate more than two thirds of GDP (29.2 percent and 38.2 percent respectively in 2009). In comparison, the agricultural sector5 accounts for about 80 percent of employment in Sudan (North and South combined), 5 Sudan‘s main agricultural products are cotton, wheat, sorghum, sugar cane, gum Arabic, and live stock. Prior to the rise of the role of oil in Sudan, agriculture was the main source of foreign exchange earnings, mainly from cotton exports. In 2009, agricultural exports accounted for 90 percent of all non-oil exports. 27 contributes about a third of the country‘s economic output (32.6 percent in 2009) and is growing at roughly 2.5 percent annually over the past decade. Oil accounts for a modest percentage (about 10 percent) of GDP, and oil production is expected to gradually decline below current levels after 2013, necessitating efforts to reduce dependence on oil and to reduce vulnerability to its price volatility (IMF 2010). While all sectors of the economy need to be mobilized to support improved economic performance, arguably industry and services (sectors located mainly in urban areas) should be a focus of national growth strategies because of their relatively strong historical performance. 29. However, South Sudan‘s cities and towns are not realizing their full productive potential. Rapid rates of urbanization coupled with weak institutions for urban management, weaknesses in land markets, poor public transport and ineffective service provision limits the productivity of urban areas and chokes agglomeration. In middle and high income countries, even small cities and towns have reasonable levels of infrastructure, educated human capital and other basic services to support production and innovation, which is not the case in small Sudanese cities and towns.6 30. Realizing the productive potential of urban areas in South Sudan would benefit the residents in both urban and rural locations. The development of urban areas is closely linked to the rural economy through the exchange of labor, capital, goods, services, information and technology that benefit residents in both locations. Recent research suggests a robust relationship between rural productivity and distance from urban areas. Areas within two hours‘ travel time of cities of at least 100,000 people appear to have diversified into nonagricultural activities (Dorosh, Wang and You 2008). Farmers closer to cities tend to use better equipment and both more and higher-quality fertilizers and pesticides, resulting in clear gains in productivity. The growth of urban markets is a key factor in raising the income of the rural population in the associated hinterland. Recent research from India confirms the importance of urbanization in reducing poverty in rural areas by leading to gains in productivity and incomes (Menon and Cali 2009). E. Policy Implications 31. Urbanization is an incontrovertible and irreversible trend—South Sudan‘s governments at national and sub-national levels need to plan proactively for urban growth. Consistent with trends across the Africa region, South Sudan is urbanizing at a rapid rate, and it is estimated that the population will continue to grow at more than twice the rate of the population as a whole so that by 2030 more than half of the population of North and South Sudan will be living in urban areas. While the exact magnitude of future urban population increases can be debated, the trend is incontrovertible and irreversible, and South Sudan‘s governments at national and sub-national levels need to plan proactively for this growth. Rapid growth and the absolute numbers of new urban residents present enormous challenges for urban management. 32. Despite its challenges, urbanization presents enormous opportunities for development and policy makers need to facilitate density even if this looks counterintuitive in terms of spatial balance. Empirical evidence shows that economic growth and density go together. And it is a compelling fact that no developed country has achieved high per capita income without a structural 6 As a consequence, the growth of industry and services in the African region is based mainly on small-scale, informal enterprises using low skills and low capital endowments, and operating mainly in response to domestic demand. Cities in Africa are also an underutilized resource for stimulating agricultural intensification and evolution to higher value production (Kessides 2006). 28 transformation of their economy from agriculture to industry and services, and without urbanization and productive urban areas. This is because urban areas can support national development by facilitating trade and processing of rural products, diversifying incomes, increasing productivity at the firm and industry levels via agglomeration economies, expanding options for more affordable service delivery, broadening opportunities for human capital formation, and promoting innovation and institutional change. In the case of South Sudan, with its relatively low population density, sustained economic growth and competitiveness in the longer term will ultimately depend on the concentration of production and resources in urban agglomerations. 33. The contribution of urban areas to South Sudan‘s economic output is already significant— but the full potential of South Sudan‘s cities has yet to be realized. While the agricultural sector remains important, it is industry and services—mainly based in urban areas—that account for the lion‘s share of GDP and GDP growth for North and South combined. While all sectors of the economy need to be mobilized to support improved economic performance, arguably industry and services (sectors located mainly in urban areas) should be a focus of longer term growth strategies because of their relatively strong historical performance. However, South Sudan‘s cities and towns are not realizing their full productive potential due to weak institutions for urban management, weaknesses in land markets, poor public transport and inadequate service provision. Arguably, the most significant factor in realizing the performance of cities, regardless of population size is the quality of urban management and institutions for local government. 34. Economic growth through agglomeration will be unbalanced, but living standards will ultimately converge, a process that can be accelerated by promoting the economic integration of urban and rural areas. While economic growth through agglomeration will be unbalanced, with production and employment concentrated in regions and cities that are favorable to markets, to stop the concentration of production or to attempt to spread out economic activity would undermine economic growth. Government can pursue policies that promote inclusiveness and accelerate the convergence living standards by ensuring the economic integration of urban and rural areas. Similarly, government should not adopt a deliberate approach to reduce the dominance of larger cities and towns—Juba, Wau and Malakal—since large urban agglomerations are typically the most productive and most attractive to innovative and information-intensive economic activities. However, basic support should also be provided to rapidly growing secondary cities and towns and their local governments to improve service delivery and governance.7 35. The urban advantage is evident in terms of human capital formation and access to services, however the numbers of urban poor are significant and likely to grow. Rural areas in have much higher poverty incidence and lower consumption than those found in urban areas, implying an urban advantage (lower inequality, lower poverty, higher consumption). This reflects several factors including: (a) better employment opportunities typically available in urban areas, which increase incomes and capacity to pay for services; and (b) high population densities which reduce the per capita costs of service delivery. However, with one in four urban residents falling below the poverty line and the absolute numbers of urban poor likely to grow rapidly in line with projected urban growth, efforts are 7 ―Rather than attempting to ―pick winners‖ among emerging secondary cities or to create new cities as growth poles, national urban policy should establish conditions and incentives that help existing local governments to mobilize revenues and to respond to the evolving demands in their jurisdictions for effective public services‖ (Kessides 2006). 29 required to understand and address the specific obstacles facing the urban poor, including causes of economic and social exclusion such as insecure tenure and access to affordable basic services. 36. The 2009 World Development Report proposes a framework and sequence for urban policies that correspond to different levels of urbanization (Table 11). In areas that are mostly rural, government should focus on building institutions that promote good land policies and basic service provision in both urban and rural areas. In areas where urbanization is already at significant levels (about 50 percent urban), in addition to these institutions, government should put in place transport and communications infrastructure that strengthens the connections between urban and rural areas, eases congestions and reduces transport costs. In areas where urbanization is advanced, besides institutions and infrastructure, targeted interventions may be necessary to address entrenched urban poverty and slums. Table 10: A Framework for Urbanization Policies Stage of Urbanization Incipient Urbanization Intermediate Advanced Urbanization (less than 25 percent)— Urbanization (about 50 (more than 75 percent) predominantly agricultural percent) or resource based, with low economic density Dimension of policy Build economic density— Build density, reduce Build density, reduce Challenge facilitate forces of distance, i.e. the ease of distance, eliminate socio- agglomeration, migration reaching markets. economic divisions and specialization. Instruments for integration: Institutions Land rights; security, Land use regulations; Land use regulation and basic education, health universal provision of land taxation; universal and water and sanitation basic and social services provision of basic services Infrastructure Connective transport Transport infrastructure; infrastructure demand management Interventions Slum area development; targeted programs to reduce crime and environmental degradation Source: World Development Report, 2009 37. Applying this framework to South Sudan implies a strong focus on building local government institutions for improved access to basic services and more fluid land markets. Where rates of urbanization and population density are generally low, priority should be given to promoting basic land and property rights8, and to expanding access to basic services, which would lay the foundation for successful urbanization. Since local governments are mandated to provide basic services under the Local Government Act of 2009, this implies a strong emphasis on building the functionality, 8 The aim would be to strengthen land tenure security and land markets, formulate policies for land administration and management, develop mechanisms for dispute resolution, and establish a land registration system. The intended results would be enhanced security of tenure—leading to easier transactions, higher land values, and more land investments—and greater mobility to urban areas (World Bank 2009). 30 capacity and accountability of local government institutions. In those counties that are rapidly urbanizing (for example the eleven counties that are more than a third urbanized9), attention should also be given to transport infrastructure that enhance linkages between rural and urban areas (rural roads), as well as targeted investments that promote mobility within growing urban areas. In the counties with significant urbanization levels (greater than 60 percent)—currently only Juba, Wau and Malakal—in addition to the areas outlined above, efforts should also be made to strengthen land use regulation and taxation, and to support and target interventions that address issues of urban poverty, informality, crime and environmental degradation. More substantial investments in urban infrastructure to promote mobility and expand access to services might also be considered. 9 Juba, Wau, Malakal, Yei, Renk, Rumbek Centre, Rubkona, Aweil West, Yambio, Khorflus, and Raga counties. 31 III. LEGAL AND INSTITUTIONAL COMPOSITION OF URBAN AREAS A. Constitutional and Legal Basis for Local Government 38. The constitutional and legal framework for decentralization in Sudan has evolved iteratively over time. Together, North and South Sudan represented the largest country in Africa, with significant cultural, linguistic, racial, ethnic and religious diversity, and various attempts were made to decentralize administration to smaller geographical areas. Over the past four decades there have been several legislative and constitutional developments that have shaped the institutional framework for a decentralized system of government, and within which urbanization has unfolded in Sudan (Box 2). At present in South Sudan the system of local government is defined by the Transitional Constitution of the Republic of South Sudan, 2011 and the Local Government Act of 2009. Box 2: Chronology of Constitutional and Legislative Developments Shaping the Local Government System in Sudan 1971 The 1971 People’s Local Government Act decentralized administration to nine provinces, each in turn divided into several councils at the district, urban, rural, neighborhood, village, and market levels. While the declared objective of the act was to decentralize decision-making away from Khartoum and to provide channels for popular participation at lower levels, in practice it concentrated authority at the provincial headquarters. 1972 Following the Addis Ababa Accord, which brought the first North-South armed conflict to an end, the 1972 Regional Self-government Act for the Southern Region was passed, which conceded self government to the Southern region and created parallel structures for ministries, legislative bodies and civil service bureaucracies. (United Nations 2004) 1980 The 1980 Regional Government Act, which superseded the 1971 People‘s Government Act created five regions out of the Northern provinces (Northern, Eastern, Central, Kordofan and Darfur).10 Each region was divided into several urban and rural councils similar to those created in 1971. 1981 The structure of the local government was subsequently stipulated in the 1981 Local Government Act (United Nations 2004). Although the regions had their own governors and parliaments, they were financially dependent on the center, and so the system remained largely ineffective. 1991 The 1991 Fourth Constitutional Decree, which superseded the 1980 Regional Government Act, established a federal system of government. Sudan was divided into nine states with 69 provinces and 219 local councils, or localities. A number of constitutional decrees followed in subsequent years further detailing and consolidating the federal system. 1994 In 1994 an amendment was enacted to subdivide Sudan into 26 states (also 188 provinces and 531 localities) superseding the nine states established in 1991, with the president appointing the state governors (Economist Intelligence Unit 2004). 1995 In 1995, the federal system was consolidated further by devolving more financial powers to the states thereby reducing the powers of the central government. 1998 The 1998 Constitution of the Sudan reaffirmed the federal system and sets out the names, boundaries and capitals of the 26 states. 2003 The 2003 Local Government Act provided for three levels of government at national, state and locality level. The act consolidated the previously numerous administrative units into larger localities (each 10 Also a separate entity for Khartoum. The Southern Region had been granted self-governance in 1972. 32 comprising about half a dozen of the previous administrative units). In 2003 Sudan consisted of 26 states, 127 provinces (renamed localities) and 134 administrative units. The act also defined the roles of the Legislative Council, Executive Committees and the Commissioner. 2005 The Local Government Act of 2003 was abolished with the signing of the CPA, which involved a decision to replace the national constitution with separate state constitutions including local government acts for each state (World Bank 2007). 39. The Transitional Constitution of the Republic of South Sudan affirms the government‘s commitment to ―establishing a decentralized democratic multi-party system of governance.‖ The Transitional Constitution replaces the Interim Constitution for South Sudan that was enacted following the signing in January 2005 of the CPA between the Government of Sudan and SPLM, which ended the war between the North and the South. The Transitional Constitution, ratified by the Legislative Assembly two days before South Sudan formally declared its independence, affirms the principles of decentralization and local participation, in particular that: (a) South Sudan is governed on the basis of a decentralized democratic system and is an all embracing homeland for its people (Article 1(4)); and (b) all levels of government shall promote democratic principles and political pluralism, and shall be guided by the principles of decentralization and devolution of power to the people through the appropriate levels of government where they can best manage and direct their affairs (Article 36(1)). 40. The Transitional Constitution confirms the devolution of powers to the ten states and local governments, and describes a system of decentralized government that reflects the unity of the people of South Sudan while recognizing their diversity. In particular, the Transitional Constitutions includes the following provisions: (a) South Sudan shall have a decentralized system of government with the following levels of government: (a) national level which shall exercise authority in respect of the people and the states; (b) state level, which shall exercise authority within a state, and render public services through the level closest to the people; and (c) local government level, which shall be the closest level to the people (Article 47). (b) The National Government shall […] respect the powers devolved to the states and local governments (Article 48(2)). (c) The linkage between the National Government and local government shall be through the government of the relevant state (Article 49(1)(a)). (d) In their relationships with each other or with other government organs, all levels of government shall […]: (i) respect each other‘s powers and competences; and (ii) collaborate in the task of governing and assist each other in fulfilling their respective constitutional obligations (Article 49(1)(b)). (e) Government organs at all levels shall perform their functions and exercise their powers so as: (i) not to encroach on or assume powers or functions conferred upon any other level except as provided in the constitution; (ii) to promote co-operation by rendering assistance and support to other levels of government; (iii) to promote communication and coordination between all levels of government; (iv) to adhere to procedures of inter-governmental interaction and comity; (v) to respect the status and institutions of other levels of 33 government; and (vi) to promote amicable settlement of disputes before resorting to litigation (Article 49(1)(c)). 41. The Transitional Constitution mandates the states with the responsibility to ―initiate legislation on the decentralized system of governance‖ and to ―issue resolutions and directives to guide all levels of government‖ (Article 59). It also affirms that the territory of the states will be governed on the basis of decentralization (Article 161(1)). The Transitional Constitution provides that each state ―shall organize, promote and empower the local government institutions‖ in accordance with the national and state constitutions, and states that ―the states shall enact laws for the establishment of a system of local government based on urban and rural councils for which they shall provide structures, composition, finance and functions‖ (Article 165(1)). However, it goes on to say that ―for the purposes of the initial establishment of a local government system, and in order to set common standards and criteria for the organization of local government, the National Government shall enact the necessary legislation.‖ 42. The Transitional Constitution also provides for a Local Government Board to be established under the office of the President, with responsibility for guiding policy on the system of local government (Article 173). The Local Government Board shall ―review the local government system and recommend the necessary policy guidelines and action‖ (Article 165(3)). Since this body was provided for under the previous constitution, it has already been formed, and it is leading the implementation of the government‘s decentralization policy, efforts to build local government capacity and to implement the Local Government Act 2009. In this regard, the Local Government Board has developed a work plan for the implementation of the act, which received the endorsement of the President, and with the support of UNDP's Local Government Recovery Programme (LGRP) and USAID, implementation of the act began on a pilot basis in Upper Nile State, and has gradually been extended to all ten states. 43. Constitutional provisions also set out the parameters for establishing the boundaries of local governments and their objectives. Specifically the boundaries of local governments will reflect land area, population, economic viability, common interest of communities and administrative convenience and effectiveness (Article 165(4)). The constitution prescribes that local government will consist of three tiers—county, payam and boma in rural areas, and city, municipal and town councils in the urban areas (Article 165(5)). The specific objectives of local government are enshrined in the constitution as follows: (a) promote self-governance and enhance the participation of people and communities in maintaining law and order and promoting democratic, transparent and accountable local government; (b) establish the local government institutions as close as possible to the people; (c) encourage the involvement of communities and community based organizations in the matters of local government, and promote dialogue among them on matters of local interest; (d) promote and facilitate civic education; (e) promote social and economic development; (f) promote self-reliance amongst the people through mobilization of local resources to ensure the provision of health and educational services to communities in a sustainable manner; (g) promote peace, reconciliation and peaceful coexistence among the various communities; (h) ensure gender mainstreaming in local government; (i) acknowledge and incorporate the role of Traditional Authority and customary law in the local government system; (j) involve communities in decisions relating to the exploitation of natural resources in their areas and promote a safe and healthy environment; and (k) promote and support the training of local cadres (Article 165(6)). The constitution also empowers local governments to levy, charge and collect 34 appropriate fees and taxes (Article 165(7)) and provides that the National Government may transfer funds to states and local governments to support budgetary deficits (Article 165(8)). 44. The status of Traditional Authorities and their role in local governance systems is also recognized by the Transitional Constitution. In particular, the constitution establishes that state legislation will provide for the role of Traditional Authority as an institution at local government level on matters affecting local communities, and that national and state legislation shall provide for the establishment, composition, functions and duties of councils for Traditional Authority leaders (Article 167). 45. The Local Government Act of 2009 provides further details on the structure, powers, roles and responsibilities of the Local Government Councils (LGCs). The act describes three tiers of local government: (a) County, City, Municipal and Town Councils; (b) Payam and Block Councils (Coordinative Administrative Units); and (c) Boma and Quarter Councils (Basic Administrative Units) (Article 15). Three types of LGCs are defined in the act: (a) Rural Councils—established in a rural settlement or area whose economy is predominantly agricultural, pastoral or mixed, with a strong base of traditional administration and cultural practices, and known as a County Council. The County Council is a corporate body which is sub�divided into Payam and Boma Councils. (Article 16) (b) Urban Councils—established in an urban or a cosmopolitan area where more than sixty percent of its economic activities are non agricultural, with a considerable level of urban infrastructure and public utilities. These are classified into: (i) City Councils, divided into Block Councils and Quarter Councils; (ii) Municipal Councils, divided into Block Councils and Quarter Councils; and (iii) Town Councils, divided into Quarter Councils. (Article 16) (c) Industrial Councils—established in an industrial area which may have either or both characteristics of an Urban or a Rural Council. It may start as a devolved and de�concentrated entity within the jurisdiction of the corporate body within which it exists; and may qualify for the status of a full corporate body as it develops. 35 Figure 22: Local Government Structure RURAL URBAN LEVEL 1 County City Municipal Town LEVEL 2 Payam Block Block LEVEL 3 Boma Quarter Quarter Quarter Source: Local Government Act, 2009 46. The Local Government Act establishes five categories of LGCs. According to this classification system, South Sudan has one City Council (Juba), two Municipal Councils (Wau and Malakal) and seven Town Councils. These are set out in Table 12 below. Table 11: Grading of LGCs Category Councils Names A City Council Juba City Council Municipal Council Wau Municipal Council Malakal Municipal Council B Town Councils Aweil Town Council Kwajok Town Council Rumbek Town Council Yambio Town Council Torit Town Council Bor Town Council Bentiu Town Council C County Council These are Counties composed of both a Town Council and a Rural Council. There are 24 County Councils classified ―C‖ D County Council There are 50 County Councils classified ―D‖ E Industrial Councils None 36 47. Under the act, each LGC has a Legislative Council, Executive Council and a Customary Law Council (Section 22). Legislative Councils are vested with legislative powers, on the basis of which they can enact by-laws (Section 25). The Legislative Council, which serves for four years, is made up of 35 members directly elected (by universal suffrage) from the Bomas or Quarters, with women constituting at least 25 percent of the Council (Section 26 and 28). Each council also has an Executive Council chaired by the County Commissioner, Mayor of the City/Municipal Council or Town Clerk of the Town Council (as the case may be) and comprising the Chief Administrators and Heads of Department (Section 46). The Executive Council is responsible for the planning and administration of the LGC. Under the Local Government Act, County Commissioners (Mayors in City/Municipal Councils) are directly elected and serve for a four-year term; they are not members of the legislative council (Section 48 and 53). Each LGC is headed by a Chief Administrator (County Executive Director for a County Council, Chief Executive Officer for a City Council, Chief Executive Office for a Municipal Council and a Town Clerk for a Town Council) (Section 59). Payams are administered by Payam Administrators and the Bomas are headed by a chief. At Payam and Boma levels the ―modern‖ administrative structure interacts or overlaps with traditional authorities (Berghof Foundation for Peace Support 2007). Presently, local governments have no elected Legislative Councils, rather they have appointed executive committees that are meant to be representative of the community and which have been organized through traditional authorities. Commissioners, who under the Local Government Act will be elected, are currently appointed (World Bank 2010). 48. Currently there is an ad hoc system of administrative deconcentration or delegation, with powers distributed between various levels of tiers of government. While the law provides for administrative decentralization to independent states, and local governments that are the responsibility of the states (so slightly less independent), currently there is an ad hoc system of administrative deconcentration or delegation, with powers distributed between various levels of tiers of government and traditional authorities. It remains uncertain to what degree local governments will effectively function independently of the states (World Bank 2010). In 2006, the UNDP completed a needs assessment of the ten state governments of South Sudan to explore the challenges associated with implementing the provisions in the Interim Constitution of Southern Sudan (ICSS) relating to participatory and decentralized governance. The assessment revealed ―a clear lack of dialogue, consultation and coordination within and between governance structures including: (a) insufficient inter- governmental discussion on critical issues related to the CPA and the ICSS; (b) lack of inter- governmental discussion and agreements between GoSS and states on the roles and functions of each level; (c) lack of a clear policy framework on fiscal decentralization and the lack of coordination between the states on revenue and utilization of natural resources; and (d) absence of ministry or institutional framework within GoSS to deal with the states and issues of inter-governmental relationships on a regular basis‖ (UNDP 2011). 37 B. Roles and Responsibilities for Service Delivery 49. Whereas the allocation of service delivery mandates across national, state and local government is described in South Sudan‘s Transitional Constitution and Local Government Act, the detailed delineation of roles and responsibilities remains unclear and decision making powers are still highly centralized. The Transitional Constitution for South Sudan establishes the basic principles of decentralization to states and local government and describes the responsibilities of GoSS and the state governments. The mandates of local government are elaborated in the 2009 Local Government Act. These constitutional and legal instruments give local governments wide ranging mandates including responsibilities for local social and economic planning, basic services including health and education, local works, public transport and roads, and local utilities. The prescribed allocation of service delivery mandates across layers of local government (Table 13) show that there are many duplicated and overlapping roles and responsibilities for service delivery at various tiers of government. Moreover there is a lack of clarity around the allocation of different responsibilities relating to each service delivery mandate, such as coordination, policy and strategy, human resource management and development, financing, planning and budgeting, implementation, operations and maintenance, accountability, and monitoring and evaluation. In practice, decision making powers are still highly centralized and there is ad hoc deconcentration and delegation of responsibilities to states and local governments. Service delivery responsibilities, as defined in the 2009 Local Government Act, are not fully devolved from states to counties. Moreover, the democratic election of local government councils is still pending, which reduces their legitimacy. 38 Table 12: Constitutional Powers and Functions of National and State Governments Powers and Functions of Powers and Functions of the Concurrent Powers of National Powers and Functions of Local National Government States Government and States Government Councils Source: Interim National Source: Interim National Source: Interim National Source: Local Government Act, Constitution of the Republic of Constitution Constitution 2009 South Sudan Flags and emblems National flag, emblem, anthem, State flag and emblem Protection of flags and emblems coat of arms and medals National public holidays Territories National Capital territory Names of states, state capital towns and state boundaries Constitution and National constitution State constitution legislation Any matter that cannot be dealt Traditional authority and with effectively by a single state customary law and requires national legislation or intervention Representation and Foreign affairs and international Bilateral and regional agreements treaties representation on culture, sports, trade, International, regional and investment, credit, loans, grants bilateral treaties and conventions and technical assistance with foreign governments and NGOs Defense and security National defense, security and protection of national borders State of emergency Security and military forces Elections Regulation of political parties Elections and referenda at all levels of government Population and Nationality and naturalization, Registration of marriage, divorce, Registration of marriage, divorce, immigration passports and visas, immigration inheritance, births, deaths, inheritance, births, deaths, and aliens adoption and affiliations adoption and affiliations Identity cards and other documentation 39 Powers and Functions of Powers and Functions of the Concurrent Powers of National Powers and Functions of Local National Government States Government and States Government Councils Source: Interim National Source: Interim National Source: Interim National Source: Local Government Act, Constitution of the Republic of Constitution Constitution 2009 South Sudan Statistics National census, surveys and State statistics and surveys Council statistics statistics Social welfare and Rehabilitation of and benefits to Social welfare including state Empowerment of women Regulation of social welfare protection disabled war veterans, orphans, pensions Gender policy widows and care for the Mother, childcare and protection dependents of deceased veterans Justice and law Judiciary Customary law courts Prisons and reformatories Coordination of customary courts enforcement National police and prisons State police and prisons Firearms control and administration of justice at Licensing of firearms The establishment, maintenance local government level and management of state prisons Community juvenile delinquency and reformatories institutions Enforcement of national and state laws Emergency services National fire brigade services State fire brigade services Fire control and ambulance Fire fighting and ambulance Fire control and ambulance services services services Disaster preparedness, management and relief and epidemics control Public sector Appointments and emoluments of Local government Local government civil service national constitutional post State civil service (appointment, tenure and holders State public utilities payment) Regulation of national civil Local public utilities service Determination of salary structure and allowances for public sector employees including the fixing of the minimum wage for both the public and private sectors National public utilities National institutions 40 Powers and Functions of Powers and Functions of the Concurrent Powers of National Powers and Functions of Local National Government States Government and States Government Councils Source: Interim National Source: Interim National Source: Interim National Source: Local Government Act, Constitution of the Republic of Constitution Constitution 2009 South Sudan Economic policy National planning State budget Financial and economic policies Local economic and social and debt Development of financial State taxes and planning planning resources for the national State finances Taxation, royalties and economic Council budget and finance government; Borrowing on sole credit of the planning Taxation within the locality in National taxation and revenue state order to raise revenue for the National budget council National borrowing Borrowing on sole credit of LGC Central bank, the incorporation of commercial banks, issuing of currency, and regulation of banking system and insurance policy Currency, coinage and exchange control Bills of exchange and promissory notes Customs, excise and export duties Standards Weights, measures and standards, dates and standards of time Meteorology Meteorology Postal services Postal services Water resources Nile Waters, trans-boundary State irrigation and embankments Management of interstate waters Irrigation and embankments waters, national rivers and lakes Water resources other than interstate waters Land, natural National land and natural Management, lease and utilization Regulation of land tenure, usage Council land and natural resources resources and resources of state land and exercise of rights in land Acquisition of land for service environmental Wildlife services Development, conservation and Natural resources and forestry delivery and development protection management of state natural Environmental management, resources and forestry resources conservation and protection Pollution control Town and rural Town and rural planning Urban development, planning and Town and rural planning planning housing 41 Powers and Functions of Powers and Functions of the Concurrent Powers of National Powers and Functions of Local National Government States Government and States Government Councils Source: Interim National Source: Interim National Source: Interim National Source: Local Government Act, Constitution of the Republic of Constitution Constitution 2009 South Sudan Cultural heritage National museums and heritage Cultural matters within the state Promoting cultural activities sites Regulation of religious matters Cultural and heritage sites, state State cultural and heritage sites, libraries, state museums libraries, museums and other Archives, antiquities, monuments historical sites State archives, antiquities, monuments Private and financial Intellectual property rights Regulation of businesses, trade Trade, commerce, industry and Regulation of businesses, trade sector Regulation of professional licenses, working conditions, industrial development licenses associations and trade unions hours, and holidays within the Banking and insurance Quarrying regulations Incorporation of companies and state Bankruptcy and insolvency registration of business names Quarrying Manufacturing licenses Matters relating to businesses, trade licenses and conditions of operation Reconstruction, National reconstruction and Local works and undertakings Economic and social development Provision of basic services development, and development Relief, repatriation, resettlement, Local works and undertakings service delivery Co-ordination of services or the rehabilitation and reconstruction establishment of minimum Delivery of public services national standards or uniform norms Energy Electricity generation Water and sanitation Water and waste management Transport Regulation of airspace Airstrips other than international River transport Support in maintenance of Civil aviation, navigation and and national airports managed by airfields shipment, navigation, beacons the civil aviation authority Council public transport and roads River transport Intrastate public transport and International and inter-state roads transport, including roads, Issuance of driving licenses and airports, waterways, river ports number plates and railways Vehicle licensing Traffic regulations 42 Powers and Functions of Powers and Functions of the Concurrent Powers of National Powers and Functions of Local National Government States Government and States Government Councils Source: Interim National Source: Interim National Source: Interim National Source: Local Government Act, Constitution of the Republic of Constitution Constitution 2009 South Sudan Agriculture and Agriculture within the state Pastures, veterinary services, and livestock animal and livestock disease control Recreation and sport Recreation and sport within the Recreation and sports Recreation and sports within the state locality Health and Establishment, regulation, and Health policy Primary health care Population provision of health care, including Consumer safety and protection hospitals and other health Human and animal drug quality facilities control Population policy and family planning Education Pre-school, primary and Tertiary education and scientific Primary education secondary education research Media and National information, State information, publications Information, publications, media telecommunications publications, mass media and and mass media and broadcasting telecommunication utilities Non-governmental Non-governmental, civil society, Charities and endowment Regulation of charities organizations and faith based organizations 43 C. Local Government Financing 50. Revenue sharing arrangements are described in the Power and Wealth Sharing Protocols of the CPA, Transitional Constitution, state constitutions and the Local Government Act 2009 (World Bank 2010). These provide for ―revenue sharing that reflects a commitment to devolution of powers and decentralization of decision-making.‖ Fiscal decentralization provisions are implemented through two modalities. Firstly, the Southern Sudan Revenue Fund, which pools all revenue collected by GoSS, and is administered by the Ministry of Finance and Economic Planning. The second is the Southern Sudan Fiscal and Financial Allocation and Monitoring Commission (SSFFAMC), mandated to ensure the transparent, equitable and timely allocation of funds to state and local government levels. In addition, the Southern Sudan Reconstruction and Development Fund was established, with financing from domestic and international sources. 51. Sub-national government accounts for approximately one third of national expenditure (excluding amounts spent on the army). Of the total GoSS budget for 2010, excluding allocations for the army, salaries and allowances accounted for 40 percent (SDG 2,206 million) of expenditures, operating expenses accounted for 41 percent (SDG 2,280 million) of expenditures, and developmental expenditures accounted for 20 percent (SDG 1,091 million). Of this, sub-national governments accounted for 30 percent (SDG 1,667 million) of expenditures—27 percent of salaries and allowances, 44 percent of operating expenses and 6 percent of developmental expenditures. In 2010, transfers to sub- national governments comprised discretionary block transfers of SDG 543 million (including a specific block transfer for counties) and conditional transfers of SDG 1,124 million, which are earmarked for specific sectors with prescribed allocations for salaries, operating expenses and developmental expenses. However accountability mechanisms are not adequate to ensure that conditional transfers are spent as intended. Currently, the county development grant is divided equally between states (SDG 7.9 million per state in 2011), and then divided equally between counties. 52. Salaries account for the bulk of sub-national expenditures. State governments face two main challenges. First, most states do not have any immediate prospects of raising their own revenues due to capacity and institutional constraints. The potential for raising state‘s non-oil revenues is estimated at only around SDG 80 million, compared with central transfers of SDG 1,667 million in 2010. Second, state governments currently employ too many workers with inadequate skills; around 42 percent of state employees are semi-skilled or unskilled. Those states with their own sources of revenues (e.g. Central Equatoria, Warrap and oil producing states such as Unity and Upper Nile) tend to have significantly higher numbers of employees than other states. In the 2010 budget, the total number of state and county government employees (including uniformed services) is around 94,000 (77 percent of public service) compared to 27,000 GoSS employees (23 percent of public service). However, transfers to the states for salaries are only sufficient to cover 40 to 50 percent of the wages for state employees. Consequently, state governments end up using the bulk of central transfers earmarked for operating expenses (SDG 1,000 million) to pay salaries for employees, which squeezes the available resources for service delivery. Disaggregated data on the budgets and staffing for counties is not available. However, it appears that for county governments, salaries also account for the bulk of county expenditures, leaving little for operating expenses. Own source revenues at the county level are marginal and even for an urbanized county such as Yei River County, own revenues account for only 9 percent of total expenditures. 44 53. In addition to government transfers, LGCs have powers to raise their own revenues. Under the Local Government Act (Section 73), the permissible tax instruments for LGCs include: (a) property tax; (b) social service (head) tax; (c) land tax; (d) animal tax; (e) gibana tax; (f) sales tax; (g) capital gains tax; (h) produce tax (ushur); and (i) any other taxes as may be authorized by law, rules and regulations. LGCs are also permitted to charge rates and fees (Section 74).11 Counties transfer forty percent of their collections to the states and keep the remaining sixty percent for their own use (World Bank 2009). Government transfers include conditional grants, block grants, equalization grants and state support grants (Section 77). All government grants and donor contributions for local government recovery and development programs are channeled through the Local Government Development Fund, a basket fund managed by an autonomous management body. 54. A major impediment to effective local service delivery is the lack of an equitable and efficient intergovernmental fiscal system that reflects service delivery mandates. The current intergovernmental fiscal system does not adequately support the equitable and efficient provision of basic services at state and locality levels—localities‘ resources are insufficient relative to their decentralized responsibilities and financing needs.12 In addition, the current transfer system relies on negotiated transfers, and there is no transparent allocation system. Efforts are therefore required to elaborate the intergovernmental fiscal arrangements, and to develop a fiscal decentralization strategy that establishes the pool of resources to be distributed to state and local governments, as well as predictable, transparent allocation formulae to address vertical and horizontal imbalances (Joint Assessment Mission 2005). 55. Additionally, policies also need to be developed to promote own-source revenue mobilization and improved revenue administration at the state and locality level. There are several problems with own source revenue administration. Local taxes are not being collected according to the law and there is weak administration of existing taxes, including reliance on neighborhood committees to determine tax liabilities and to collect revenues, lack of adequate numbers of skilled staff, and a lack of information on the local tax base and taxpayers for each revenue instrument (Joint Assessment Mission 2005). D. Urban Land and Housing 56. The CPA and the Land Act of 2009 changed the legal basis for land ownership, establishing that the ownership of unregistered land in South Sudan is vested with communities rather than the government or private entities. Since 1906, various ordinances and acts have been passed, which have established that land not registered to a specific owner is the property or the government. In particular, the Unregistered Land Act of 1970 had far reaching implications for customary land 11 These include: (a) user service charges; (b) license fees; (c) administrative fines; (d) royalties; (e) permits; (f) customary court fees and fines; (g) contract fees; (h) auction fees; and any other fees and charges as may be authorized by law, rules and regulations. 12 While the states and localities have significant mandates for planning and service delivery, they work with limited budgets and cannot deliver what is expected from them. Extension of service networks (especially water supply and electricity) is impeded by high capital costs. In virtually all Sudanese towns, these essential services are extended to neighborhoods at a high subsidy borne by the government. With insufficient budgets, the agencies in charge have great difficulties in extending their services to all neighborhoods. Alternatively, households resort to makeshift solutions such as individual power generators and water sold by vendors in spite of its relatively high cost and prospects of contamination. 45 ownership, whether by individuals or by communities, since it deemed any land not registered prior to the enactment of the law to be government-owned. In addition, it included no provisions for the recognition, settlement, eventual registration or compensation for either communities or individuals (Komey 2009). However, the 2005 CPA provided the avenue for GoSS to ―progressively develop and amend relevant laws to incorporate customary laws and practices, local heritage and international trends and practices‖ (GoSS 2005). In accordance with the CPA provisions, GoSS established a Land Commission and enacted the Land Act of 2009, which revoked all existing national laws, establishing that the ownership of unregistered land is vested with communities rather than the government or private entities. This is more in harmony with land ownership in South Sudan and more generally in rural areas, where customary laws are more prevalent. However, its adoption has slowed down urban development as communities often take longer to agree to turn over their lands to developers or government agencies. Authorities now have to negotiate with communities and offer them some services or communal facilities in return for their land. Additionally, the institutional arrangements for the administration of customary (and statutory) tenure remain undefined, and there is a lack of clarity around the roles and responsibilities of central, state and county governments as well as those of traditional authorities (USAID 2010). 57. Responsibilities for urban planning and development are fragmented at state and locality levels. For example, in Juba, preparation of master and structure plans is the responsibility of GoSS Ministry of Housing, Physical Planning and Environment, while the CES Ministry of Housing is responsible for issuing building permits. The payams‘ administrative units follow up on construction activities. 58. There are several challenges associated with IDPs and returnees in urban areas, most notably land disputes. IDPs that were displaced to urban and peri-urban areas often squatted on land that was abandoned or unoccupied at the time but was either privately owned or owned by the state. The IDPs are considered illegal squatters and have no legal rights to the land they occupy. Problems arise in urban areas because of competing claims by the original owners and squatters. Many IDPs have faced eviction, either because the private owners of the land are themselves returning from displacement and are reclaiming their plots, or because the local authorities have started developing the land. Additionally, SPLA soldiers occupied urban plots in towns, such as Juba and Yei during the war, and have refused to vacate the plots when the original owners return. In some cases, soldiers have claimed they are entitled to the land because they fought in the war against the northern army to free the land from northern occupation (IDMC 2010). In cases where infrastructure has been erected on ―non-owned‖ plots, there have been claims for compensation. There have also been cases of illegal sale of non-owned plots. In Juba, squatting and land-grapping are major issues, exacerbated by the lack of a clear legal and policy framework on land issues, under-resourced institutions and the lack of a systematic and transparent process for plot allocation, which favors those with money and connections (Mosel 2011). 59. Another major challenge is the provision of new residential plots and land for development that need to be created through an exercise of urban planning. The protracted conflict in South Sudan has undermined the already weak capacity of urban local authorities and any serious urban planning efforts. The towns in South Sudan that host the largest shares of conflict-induced migrants and returnees (including Juba, Wau and Malakal) have limited capacity to cope with this growth. Existing master plans are out of date, and are based on population growth assumptions that failed to foresee the 46 actual scale of displacement and urban population growth.13 In areas where IDPs and refugees are now returning, there is a serious mismatch between the expected urban population and the number of available plots, resulting in major obstacles for the return process and the likelihood that returnees will be forced to settle in informal, unplanned and un-served settlements. Additionally, the legal basis for land ownership (which now vests ownership with individual owners and communities, rather than the government) has limited the availability of land for private investors. This encompasses the preparation of an urban master plan, better use of the existing urban space, the extension of the present gazetted areas and the provision of new residential plots (Norwegian Refugee Council 2005). E. Policy Implications 60. Issues relating to the legal, policy and institutional framework for decentralization. The Transitional Constitution and the Local Government Act 2009 establish the basic principles of decentralization to states and local government. Under the act, local governments are given wide ranging responsibilities for local social and economic planning, basic services including health and education, local works, public transport and roads, and local utilities. However, the following issues need to be addressed: (a) Lack of clarity around roles and responsibilities for service delivery and how these will evolve over time. While the Local Government Act establishes the broad parameters for devolved functions and responsibilities, it is necessary to further clarify the mandates for service delivery at the various tiers of government and in particular, to elaborate the allocation of different responsibilities relating to each service delivery mandate, such as coordination, policy and strategy, human resource management and development, financing, planning and budgeting, implementation, operations and maintenance, accountability, and monitoring and evaluation. (b) Decision making powers are still highly centralized and there is ad hoc deconcentration and delegation of responsibilities to states and local governments. Service delivery responsibilities are not devolved from state ministries to counties, and the democratic election of local government councils is still pending which reduces their legitimacy. It is important to recognize that the implementation of the Local Government Act is a process that will take time, especially in the context of severe capacity constraints at all levels of government, but particularly at the sub-national levels. Moving forward, it will be necessary to take a pragmatic approach to actualizing the Local Government Act by appropriately sequencing the implementation of its various provisions and establishing a realistic work plan for the transitional period. Such an approach would need to adequately empower local government, while taking account of the substantial human and fiscal constraints in the transitional period. (c) Limited resources available for service delivery—and lack of clarity around intergovernmental fiscal architecture. Intergovernmental fiscal arrangements are outlined in the CPA, Transitional Constitution, state constitutions and the Local Government Act, 13 Some urban planning has been conducted in Juba. A Physical and Social Infrastructure Development Plan was prepared in 2007 as part of an emergency reconstruction and development program. However, physical plans have not been realized partly due to rapid increases in urban populations well beyond assumptions implicit in the plans, as well as due to lack of commitment or financing to actualize plans, and conflicts over land use. 47 which provide for ―revenue sharing that reflects a commitment to devolution of powers and decentralization of decision-making.‖ However, in practice the revenue instruments and intergovernmental fiscal transfers allocated to states and local governments do not correspond with the legal allocation of service delivery mandates. Certainly, devolution without the requisite resources will only set local governments up for failure. With regard to own-source revenues and revenue sharing arrangements, there is a lack of clarity around: (i) the allocation of revenue instruments between GoSS, the states and local governments including revenue sharing arrangements, and as a result there are overlaps and conflicts between different levels of government over revenue raising powers; (ii) definitions of the various tax bases; (iii) powers of the various tiers of government to set or vary the tax rate applied to each tax base; and (iv) collection modalities. With regard to intergovernmental fiscal transfers, decisions need to be made on the principles underlying the allocation of grants to states and counties and the design of the grant mechanisms. Efforts are therefore required to elaborate intergovernmental fiscal arrangements and develop a fiscal decentralization strategy that addresses vertical and horizontal imbalances, provides incentives for performance, promotes own-source revenue mobilization and improves revenue administration at the state and locality level. (d) Weak institutional arrangements and capacity for managing decentralization at GoSS level. Currently, there is no ministry for local government in GoSS and Local Government Board is not able to directly present issues before the cabinet and Assembly. Furthermore, implementation of the Local Government Act is left to the ministries of local government at state level. Both Local Government Board and the state ministries have advocated for a cabinet level ministry, but without success (Bennet, et al. 2010). 61. Weak management and fiscal capacity of local government. The transfer of authority and adequate resources to the local level will not solve South Sudan's service delivery challenges, which will also depend on the efficiency with which expenditure assignments are executed. At present, there is very limited capacity in place in terms of local government budgets, staff, and administrative infrastructure and equipment. Available capacity is unevenly spread. Recent economic and sector work also highlights the significant weaknesses in own source revenue mobilization and administration,14 noting that estimates of non-oil revenue potential is fairly significant in South Sudan. Management of fiduciary concerns in local governments is weak and monitoring and reporting systems are not well developed. While there are capacity constraints at all levels of government, so far attention has focused at GoSS and state levels, leaving little resources and capacity at lower levels of government. There is a need to build and strengthen the functionality of local governments and improve their management and fiscal capacities in order to establish a basic platform for service delivery. Basic administrative and communications infrastructure and equipment is needed, and core functions of local governments need to be built and strengthened over time, in the areas of participatory development planning, own-source revenue mobilization and administration, financial management (budgeting, accounting, reporting and auditing), procurement, project management, monitoring and evaluation (M&E) and the development of accountability mechanisms (including formal mechanisms through parliaments and councils, and informal mechanisms at community level). 14 These include: (a) consistent under-estimation of tax bases, under-assessment of tax liabilities, and low collection rates; (b) diverse approaches by local officials to the same tax bases; (c) no systematic projection of revenue estimates or reporting of revenue collections; and (d) budget data provides a poor guide for assessing revenue potential and tax effort. 48 62. Poor quality of local governance and integration with traditional authorities. Experiences in other post-conflict settings suggest that ―state maintenance,‖ that is establishing core functions of government for effective economic and fiscal management, is necessary but not sufficient for development. Rather, ―state transformation‖ is required to improve government legitimacy through effective and transparent use of public resources, and to rebuild social capital (cohesion, trust, inclusion, collective action) in communities. The quality of local governance—the interaction between communities and the state at the lowest tier of government—needs to be improved for social cohesion, voice and accountability. It is also necessary to resolve the issue of how traditional authorities (chiefs) will relate to the formal structures of local government (World Bank 2010). While the Transitional Constitution and Local Government Act recognizes the role of traditional authorities, the allocation of functional roles and fiscal relations between chiefs/communities and local government remain unclear. Additionally, chiefs continue to enjoy significant informal authority in community affairs and preside over customary law courts, which are the primary means of providing access to judicial services to the poor and in rural areas. Customary courts are currently overseen by local government, however the judiciary would prefer to have them under their administrative control to integrate customary law into common law (United States Institute of Peace 2010). The multi-donor evaluation of development assistance notes ―although the 2009 Local Government Act seeks to extend the formal justice system to county level, the unclear boundaries and tensions between this and customary law will remain for as long as there is insufficient training and integration of chiefs and sub-chiefs‖ (Bennet, et al. 2010). 49 IV. CONCLUSIONS AND RECOMMENDATIONS A. Priorities for the Urban and Local Government Sector 63. As South Sudan transitions to an independent state, citizens have high expectations of an early independence dividend. There is significant pressure on GoSS to achieve tangible and early results, which can help to build citizen confidence and trust in the state. Results need to be achieved in areas that reflect citizen priorities, specifically enhanced security, improved governance, expanded access to basic services, and improved market and livelihood opportunities. This will require GoSS to harness the combined capacity of government institutions (at national and decentralized levels), development partners, non-governmental organizations, the private sector and civil society. However, in pursuing an early independence dividend, care must be taken not to undermine longer-term institution building efforts. The forthcoming World Development Report argues that efforts to build citizen confidence in the state and to deliver early results need to be linked to the development of legitimate, accountable, and capable institutions (World Bank 2011). 64. Insecurity—driven by inter-ethnic tensions and risk of marginalization—can compromise and hamper service delivery efforts. Security is a pre-condition for effective and sustained service provision and priority needs to be given to interventions that address the main drivers of conflict in South Sudan: ethnic tensions, land and cattle disputes, and disaffected youth (Bennet, et al. 2010). The reintegration of IDPs and returning refugees exacerbate these conflict drivers. South Sudan is ethnically diverse with no uniform political or cultural identity. A highly centralized military and administrative system with ―winner takes all‖ politics has the potential to accentuate inter-ethnic tensions, particularly in the context of a state that will potentially derive about 98 percent of its revenues from oil. A multi- donor evaluation of development assistance since the signing of the CPA highlights the imperative to prevent the Khartoum-South relationship—which led to war—being duplicated in Juba-State-County relationships, and notes that ―too much focus on Juba, and specific elements within Juba, may cause a real sense of marginalization in other areas‖ (Bennet, et al. 2010). Arguably, the success of future state building measures will depend on delivering results that extend to all citizens, regardless of their geographical location, political affiliations or cultural identities. 65. Decentralization and devolution are important peace-building and state building activities. Experience suggests that when ―political demands facing a society are linked to geographically based identity claims, a supplement to democratizing central political systems is territorial devolution (or decentralization) of political power‖ and that decentralization can ―avert center-periphery ethnic conflict‖ (World Bank 2011). The forthcoming World Development Report notes the following critical factors for successful decentralization: (a) agreeing in detail on the degree of subsidiarity, which requires elaborating the legal and policy framework for decentralization, and determining what will be decentralized and when; (b) offering new institutions adequate technical support and the fiscal resources to deliver services, which requires building the management and fiscal capacities of local governments; and (c) designing mechanisms that ensure proper accountability of devolved structures to local citizens, offsetting the potential for local elite capture (i.e. improving local governance). Additionally, intergovernmental arrangements need to distinguish between urban and rural localities, taking into account the specific needs of rapidly growing urban localities. These factors are addressed in turn below. 66. Local government can and should play an early role. Strengthening the legitimacy and credibility of GoSS and building citizen confidence requires engaging ethnic minorities in the political 50 and decision-making process, as well as ensuring broad access to basic services, and market and livelihood opportunities. Local government can play a critical role by providing a mechanism for broad political representation (voice). Over the medium term it can also provide a sustainable platform for service delivery, and for the provision of public goods that facilitate market and livelihood opportunities. 67. Agree in detail on the legal and policy framework for decentralization, and on what will be decentralized and when. In approaching institution building and reform, there is often the tendency to try to tackle everything at once and immediately, however the WDR notes that more successful efforts have sequenced incremental reforms and adapted programs of institutional reform to the political context. Therefore, in the post-independence transitional period, it will be necessary to take a pragmatic approach to decentralization, one that situates development and service delivery in the context of a system of partial decentralization. Nevertheless, in the transitional period, progress should be made to elaborate the allocation of functions and powers at national, state and local government levels, and to develop a clear vision on what will be decentralized and when. Key near-term priorities include the following: (a) Prepare a decentralization policy that would set out the evolution of service delivery responsibilities consistent with available resources and capacity. The policy would clarify the sequencing of the implementation of the Local Government Act 2009 in the near-, medium-, and longer-term, including the incremental establishment of administrative structures as envisaged under the Act (e.g., a transitional period of, say, four years could be established for implementing the envisaged intergovernmental arrangements). At the same time maintain flexibility to adjust course during implementation as lessons are learned. (b) Review and clarify the mandates for service delivery at various tiers of government including the allocation of different responsibilities relating to each service delivery mandate, such as coordination, policy and strategy, human resource management and development, financing, planning and budgeting, implementation, operations and maintenance, and monitoring and evaluation. (c) Elaborate intergovernmental fiscal arrangements and develop a fiscal decentralization strategy that addresses vertical and horizontal imbalances, incentivizes performance, promotes own-source revenue mobilization and improves revenue administration at the state and locality level. This would include reviewing and clarifying the allocation of tax and non-tax revenue sources and revenue sharing arrangements, and the design of a system of intergovernmental fiscal transfers. (d) Review and support the capacity of GoSS—in particular the Presidency, Local Government Board, the SSFFAMC and the Ministry of Finance and Economic Policy (including but not limited to the intergovernmental grants unit) —to design and implement decentralization, including fiscal decentralization. This may encompass the reorientation and restructuring of GoSS and state ministries and agencies towards their new roles and responsibilities, as well as strengthening their policy and monitoring roles. (e) Strengthen the Governors Forum and Commissioners‘ Forums by embedding them in the budgeted activities of GoSS. 51 (f) In line with the decentralization policy, undertake the incremental transfer of financial and human resources to build up local capacity to undertake new responsibilities. (g) Establish knowledge sharing arrangements with counterparts in other countries that have dealt with similar state building and transitional questions. 68. Simultaneously, build the management and fiscal capacity of local government for improved service delivery. In the short term, South Sudan will continue to face a trade-off between the development of sustainable capacity within government (at all levels) and the pressure to meet expectations for an independence dividend and an immediate improvement in services. A key lesson learned from Sierra Leone, Northern Uganda, and elsewhere is the importance of supporting a virtuous cycle of local governance whereby weak local governments are given the opportunity to ―learn by doing,‖ establish a track record, and develop capacity, where the central government and donors are willing to transfer resources to local governments with a good track record, and where citizens see the relevance of local governments and engage in collective action (demand public services, pay taxes, hold local governments accountable). In this virtuous cycle, local governments exercise their authority, incrementally build capacity, and adopt inclusive, accountable practices. A key priority in the transitional period would be to assist local governments to acquire the management skills necessary to translate resources into service delivery improvements on the ground. Progress towards this objective could be achieved through the following: 69. Build capacity through learning-by-doing, thereby supporting a virtuous cycle of local governance. In the short term, South Sudan will continue to face a trade-off between the development of sustainable capacity within government (at all levels) and the pressure to meet expectations for an independence dividend and an immediate improvement in services. A key lesson learned from Sierra Leone, Northern Uganda and elsewhere, is the importance of supporting a virtuous cycle of local governance whereby weak local governments are given the opportunity to ―learn by doing,‖ establish a track record, and develop capacity, where the central government and donors are willing to transfer resources to local governments with a good track record, and where citizens see the relevance of local governments and engage in collective action (demand public services, pay taxes, hold local governments accountable). In this virtuous cycle, local governments exercise their authority, incrementally build capacity, and adopt inclusive, accountable practices. A key priority would be to assist local governments acquire the management skills necessary to translate resources into service delivery improvements on the ground. 70. Pursue interventions to improve local governance. In addition to strengthening the core functions of local governments, it is necessary to empower communities to effectively express demand for public services and hold their local governments accountable, to promote inclusive decision making processes within communities and to empower communities to undertake collective action. (a) This might be achieved by undertaking an intensive effort to sensitize communities and civil society groups on the relevance of decentralization and the role they can play in its successful implementation. Consideration could be given to using the multi-stakeholder forums established by the SSACC for this purpose. (b) Review the relationship between traditional authorities (chiefs) and the formal structures of local government, including the allocation of functional roles and fiscal relations. Particular 52 attention needs to be given to the relationship between common law and customary law systems and structures. (c) Undertake activities to orient and train chiefs and sub-chiefs on their roles and responsibilities vis à vis the Local Government Act. 71. Address the challenges posed by rapidly growing urban areas. Applying the lens of the WDR 2009, the framework and sequence for urban policy options should correspond to different levels of urbanization in South Sudan: (a) In most of South Sudan where rates of urbanization and population density are very low, priority should be given to promoting basic land and property rights, and to expanding access to basic services, which would lay the foundation for successful urbanization. (b) In those counties that are rapidly urbanizing (for example the eleven counties in South Sudan that are more than a third urbanized), attention should also be given to transport infrastructure that enhance linkages between rural and urban areas (rural roads), as well as targeted investments that promote mobility within growing urban areas. (c) In the counties with significant urbanization levels—currently only Juba, Wau and Malakal—efforts should also be made to strengthen land use regulation and taxation, and to support and target interventions that address issues of urban poverty, informality, crime and environmental degradation. More substantial investments in urban infrastructure to promote mobility and expand access to services might be considered. 72. Addressing issues associated with conflict-induced displacement. Many of the larger urban areas such as Juba, Wau and Malakal are also home to IDP populations—experiences in other post conflict settings suggest that significant numbers of those displaced to urban areas will choose to remain rather than go back to rural areas; these areas need to be planned and serviced. B. Options for Future World Bank Engagement 73. Currently the Bank‘s engagement in South Sudan is primarily through a multi-donor trust fund for South Sudan (MDTF-SS), a US$524 million fund established in 2005 to support reconstruction and development, and managed by the Bank. The trust fund was scheduled to close on June 30, 2011 but has been extended by one year to June 30, 2012. 74. The nature of the Bank‘s assistance in South Sudan over the medium to longer term would be influenced by several factors including: (a) the process and timeline for the full separation of South Sudan; (b) scenarios for any apportioning of debt between North and South Sudan; (c) the likelihood and timeframe for clearing arrears and possible debt relief15; and (d) the future allocation of IDA funds. While the extent and timeframe for the Bank‘s support is uncertain, there is a clear indication of the Bank‘s intention to support development in South Sudan, and to put in place a long-term post- referendum strategy focusing on six themes: oil revenue management; public expenditure management; delivery of basic services; private sector growth; infrastructure; and security.‖ A new Interim Strategy Note would also be prepared. 15 Total external debt in nominal terms stood at US$35.7 billion at end-2009, with over US$30 billion in arrears. 53 75. There is momentum towards outlining a strategy for development assistance and lending in the medium term is likely. In the short term, the focus should be on dissemination of the first phase of this economic and sector work to stimulate discussion on urban and local government issues, and identifying priorities for further analytical work in the second phase. Efforts should also be made to integrate priority urban issues into the post-independence assistance strategy. 76. With the prospect of establishing a lending program, an urgent priority would be to provide assistance to GoSS to establish and build the capacity of local government institutions as provided for under the Local Government Act of 2009, and to develop and strengthen intergovernmental fiscal systems. Support would aim to build the management and fiscal capacities of local governments for improved service delivery, and to enhance the quality of governance for improved social cohesion, voice and accountability. Such a program might provide support to: (a) Prioritize and execute investments in ―start up‖ local government administrative infrastructure and equipment including offices and ICT equipment to create an environment in which staff can effectively carry out their functions. Consideration should also be given to investments in staff accommodation, to provide an incentive for the recruitment and retention of key local government staff. (b) Develop a program of capacity-building for local governments based on the principle of ―learning by doing‖ by providing discretionary, performance-based block grants. Such a grant mechanism, which could build on the existing county development grant, could also draw on the experiences and lessons learned from systems established in Uganda, Tanzania, Ethiopia, and Sierra Leone. The discretionary grant would be allocated on the basis of an equitable formula with minimum access conditions based on inclusiveness, transparency, and accountability requirements (e.g., preparation of participatory county development plans and budgets, holding regular council meetings and preparing minutes, and so forth), ascertained through an annual performance assessment. Initially, the bar would be set low, but incrementally raised over time as capacities improve. There would be the expectation that counties would use the resources to address pressing needs in their localities through small-scale development projects, if strong capacity-building support is provided to them and transparent and accountable financial management is required of them. These would ideally generate local employment, and also furnish some of the requisite conditions for the rehabilitation of local livelihoods and private sector growth, which is critical to the reintegration of IDPs and returning refugees. Additionally, if GoSS can successfully implement the grant system and local governments can successfully utilize the grant, it will raise the confidence of donors to provide budget support to local governments through the grant system rather than through discrete projects. Such a system was established in Sierra Leone (supported by the Bank through the Institutional Reform and Capacity-building Project), whereby local governments were challenged and supported to identify, design, and implement one "Rapid Result Initiative" (RRI) that was urgent and compelling, visible, and could be actualized in 100 days, identified through a participatory process. RRIs tackled diverse development issues including water, sanitation, feeder roads, bridges, traffic, agricultural production and markets. Local governments gained pride, confidence and a desire to do more, citizens increased their awareness and appreciation of local governments, and a performance grant 54 mechanism was established as a credible transfer system for other financiers to use. Box 3 below. (c) To complement the ―learning by doing‖ and to support the achievement of minimum access conditions, provide training and hands-on mentoring of local government staff in the areas of participatory planning, revenue mobilization and administration, financial management, procurement, project management and monitoring and evaluation. Lessons learned in Tanzania, Uganda and elsewhere could be leveraged, whereby capacity-building grants are allocated to local governments once they have prepared a capacity-building plan, and resources can be put towards capacity-building for staff and councilors (a demand-driven approach to capacity-building). Building on the work of UNDP, USAID and GIZ, capacity- building elements could include induction and orientation, training of trainers, development of tailor-made training programs or ―generic training modules‖ on basic local government functions, on-the-job coaching, seminars, participation in study tours, and follow-up support. (d) While the focus would be on building institutions and systems for local service delivery, a mechanism could be developed for financing priority urban infrastructure investments (for example in the state capitals, or in the larger urban areas of Juba, Wau and Malakal) on the basis of fiscal and other performance criteria. 55 Box 3: Supporting Local Governance in Sierra Leone When the decade long civil war ended in Sierra Leone in 2002, the situation was characterized by extreme poverty, weak institutional structures and deterioration in governance, centralization of power and resources in Freetown, a rural population deprived of economic opportunities, education and political participation, marginalization of youth from decision making, and significant rates of population displacement. A priority for development was the need to reestablish trust through inclusive and accountable governance. In particular it was necessary to address the vicious cycle of deteriorating local governance whereby local government had little authority, autonomy and capacity, where the central government and donors were unwilling to transfer resources to local government, where citizens saw local governments as irrelevant and didn‘t participate in decision making processes; a situation whereby local governments had little authority and resources and no pressure from communities to improve performance. The Bank provided support for governance reform in Sierra Leone through two entry points— decentralization and Public Financial Management reform. Under the Institutional Reform & Capacity-building Project (IRCBP), support was provided to: (1) strengthen Government of Sierra Leone (GoSL) capacity to design/implement decentralization, including fiscal decentralization; (2) invest in local government offices, equipment, communications; (3) strengthen local capacity in participatory planning, revenue mobilization, financial management, project management and M&E; and (3) M&E of decentralization. GoSL challenged and supported each local council to identify, design, and implement one ―Rapid Result Initiative‖ (RRI) that was urgent and compelling, visible, and could be actualized in 100 days, identified through a participatory process. Financing was provided through a Local Government Development Grant, which developed and tested a discretionary, block grant mechanism, allocated on the basis of an equitable formula with minimum conditions for access based on transparency and accountability requirements established in the local government legislation (e.g. preparation of local council development plans and budgets and so forth). RRIs tackled diverse development issues including water, sanitation, feeder roads, bridges, traffic, rice production, post-harvest loss. Local governments gained pride, confidence and a desire to do more, citizens increased their awareness and appreciation of local governments, and the LGDG was established as a credible GoSL transfer system for other financiers to use in future. A program of Public Financial Management (PFM) reforms was also developed to improve the strategic orientation of the budget, to improve the transparency of the overall government resource envelope and allocation, and to improve the accountability of spending units. A component was included under the IRCBP to assist in the design of new financial management processes and systems, building financial management capacity-building in local government, implementing procurement reform and implementing a new Integrated Financial Management Information System (IFMIS). The Sierra Leone experience demonstrates the importance of building capacity through learning-by- doing reinforced with an appropriate incentive system, encouraging and reinforcing a results orientation, investing in central government capacity to support local governments, and good M&E. The experience also highlights the need for realistic expectation given the very low skill base in the civil service. 56 ANNEX A: JUBA CASE STUDY A. Population Growth 77. Juba has alternatively acted as an administrative centre and garrison town, which has influenced the rate and pattern of population growth. From 1914 until 1955, Juba‘s strategic river location and prominence as the capital of the Equatoria Province influenced the town‘s growth. During the first civil war, from 1955 until 1972, Juba became a garrison town and headquarters for the Sudanese Army that was fighting the rebel Anya Nya militia. While many residents fled to neighboring countries, others remained or sought refuge in Juba, which was relatively safer than other areas. After the Addis Ababa Peace Accord of 1972, Juba was selected as the capital of the newly-created, semi-autonomous Southern Region. At the same time, it continued to act as a provincial capital and district headquarters. Many refugees started to return to South Sudan—many choosing to settle in Juba. By 1973 the population of Juba stood at 56,737 persons, from just 11,000 in 1955/56. Juba continued to grow as a regional capital—new government institutions were created and a program of reconstruction and rehabilitation was launched. This increased the attraction of Juba, where public sector employment is a significant source of employment.16 By 1983, the population of Juba has grown to approximately 100,000. With the outbreak of war in 1983, Juba once again became a garrison town for the Sudanese Army. As was the case with the previous conflict, many people fled the city to neighboring countries or to northern Sudan, however others were internally displaced to Juba from smaller towns and the countryside. By 1993, the population of Juba has reached 125,980, suggesting an average intercensal growth rate of 2.2 percent. 78. Juba has continued to grow significantly since the signing of the Comprehensive Peace Agreement. Since the signing of the CPA in 2005, Juba functions as the seat of GoSS and the capital of the Central Equatoria State (CES). An emergency program of rehabilitation of infrastructure, housing and institutions has been launched in the state capitals. Many new government institutions were created in Juba (by GoSS and the CES) financed by the MDTF spearheaded by the World Bank. The United Nations' Peace Keeping Forces and several bilateral aid agencies and international development organizations have launched programs and established offices in Juba. Over 2 million people are estimated to have returned to South Sudan since 2005 attracted by better jobs and services, many of them choosing to return to Juba (Humanitarian Policy Group 2010). By 2008, the population of Juba was recorded at 327,413 people. This suggests an average annual growth rate of 6.4 percent over the intercensal period (Table 154 below). 79. The number of urban poor in Juba has increased significantly over this period, and their needs are largely unmet. Research by the Humanitarian Policy Group suggests that those who cannot afford to own land are particularly vulnerable. Many displaced people who had sought refuge in the town center during the war claim that they have been evicted and forced to the overcrowded, unserved settlements on the outskirts of town, where they struggle to survive and rely on casual labor. It has been reported that in 2009, around 30,000 people faced demolitions, displacement and destruction of their livelihoods due to a badly implemented government effort to improve services, infrastructure and security in the town centre. Vacated land has since been occupied by those who could afford to pay the 16 In fact, a study by the Bartlett School of Architecture conducted in 1977 estimated that over 75 percent of households in Juba had at least one member employed by the public sector. 57 highest price; land and rental prices have soared to levels unaffordable to most people (Humanitarian Policy Group 2010). Table 13: Population Growth in Juba Annual Intercensal Census Year Population (‗000) Growth Rate 1955/56 11 1973 57 9.4% 1983 100 5.6% 1993 125 2.2% 2008 327 6.4% B. Institutional Arrangements 80. The administrative status of Juba has shifted over time17—it is currently the capital of South Sudan and CES. The town comprises three payams (districts): Juba town, Munuki and Kator. Juba Payam is the oldest of the three payams, and forms the nucleus around which the city has developed over the years. Greater Juba divided into four payams: Dolo, Rajaf, Kworijiik and Lokiliri (Humanitarian Policy Group 2008). Figure 23: Institutional Arrangements in Juba GoSS Central Equatoria State Juba County Juba Munuki Kator Dolo Rajaf Kworijiik Lokiliri Town (Urban) (Urban) (Rural) (Rural) (Rural) (Rural) (Urban) 17 From 1956-1972, Juba was the capital of Equatoria Province; from 1972-1982 it was the capital of the Southern Region; from 1982-1991 it was the capital of Equatoria Province again; from 1991-2005 it was the capital of Eastern Equatoria State; and since the adoption of the 2005 CPA it has assumed the dual role of the capital of Southern Sudan and the capital of the CES. 58 81. Table 16 summarizes the allocation of responsibilities for urban planning and services between the various levels of government in Juba—including GoSS, CES, Juba County and Juba Payam. Table 14: Allocation of Responsibilities for Service Delivery in Juba Service Allocation of responsibilities Urban Urban planning responsibilities are shared between GoSS and CES. Planning Housing Responsibility for housing is shared between CES, Juba County and Juba Payams. Roads and CES is responsible for major roads, while the counties and localities are responsible for Bridges secondary roads. However, presently the rehabilitation of roads and bridges in Juba is being managed by the Ministry of Transport and Roads, GoSS as part of the emergency rehabilitation program. Water GoSS Urban Water Corporation is responsible for the treatment and distribution of water in urban areas. In rural areas, boreholes are established and managed by the Rural Water Corporation. Power The Electricity Corporation, a subsidiary of GoSS, is responsible for generation and distribution of electricity in urban South Sudan. Solid Waste Each of the three contractors assigned to collect solid waste from the main streets of the Management three payams is also responsible for carting it and dumping it safely in garbage dumps outside the city limits. The contractors collect an agreed upon fee from beneficiaries while the payam administrators supervise the contractors. Sewerage Responsibility for sewerage disposal rests with Juba County and Juba Payams. Health Assisted by GoSS Ministry of Health, CES Ministry of Health is in charge of health care provision in Juba. Counties and payams also have shared responsibilities for local health facilities. Education Primary and secondary education is provided and managed by CES Ministry of Education. C. Land, Housing and Urban Planning 82. The nucleus for Juba town was laid down by the British administration in 1914 as an administrative center. No evidence of proper planning of that nucleus is known. The town then had a river port for steamers, a river crossing, administrative buildings, a burgeoning market and few facilities such as schools, a hospital, club, church, and so forth. Since colonial times, the lands within the urban limits of Juba town (corresponding to a two-kilometer radius) have been known as the ―gazetted‖ area outside of which are unregistered rural lands. The urban limits of Juba nowadays are enclosed within a 3.5 kilometer radius. Since colonial times, the town has been subdivided into a first-class area, second- and third- class areas, and ―native lodging‖, with the latter occupying about 70 percent of the town. The development is generally characterized by low densities and single-storey buildings. Over time, this demarcation has been blurred as more ―native lodging‖ grew informally in various locations to 59 accommodate displaced households. But the city still maintains its character and residential classification. 83. Since 2005, unregistered land is now vested with communities. According to the land law that applied throughout Sudan, which was enacted in 1925 and amended in 1928, all lands that were not registered to specific owners were considered government land. However, the 2005 CPA changed the legal basis for land ownership—stipulating that the ownership of unregistered land in South Sudan is vested in communities rather than the government or private entities. This has slowed down development as more time is now required to convince communities to turn over ownership of some of their land for urban expansion, roads or specific infrastructure projects. Authorities now have to negotiate with those communities and offer them some services or communal facilities in return for their lands. 84. Responsibilities for urban planning and housing are divided between GoSS, CES and the payams. Whereas preparation of master and structure plans is the responsibility of GoSS Ministry of Housing, Physical Planning and Environment, CES Ministry of Housing is responsible for issuing building permits for permanent buildings. The payam's administrative unit follows up on construction activities. It also supervises the building of pit latrine to ensure that they are built according to specifications. A recent report from Humanitarian Policy Group argues that there has been little improvement in basic services in Juba since 2005 and services are under growing pressure as population grows. In particular, the report argues that town planning has suffered from confusion about who in GoSS and CES ministries has the power to make decisions on urban planning. (Humanitarian Policy Group 2010) 85. A Physical and Social Infrastructure Development Plan was prepared for Juba in 2007 as part of an emergency program. In the post-Independence era only small-scale planning of specific areas or residential extensions were conducted. In 1972 the Italian consultants MEFFIT prepared a regional plan for the whole Southern region but it was not implemented. In 1973 the district of Munuki was allocated to people as a fourth-class area that has been upgraded recently into a third-class area. Since then it has developed as one of three major payams in Juba. After the CPA, USAID funded a program to map out the capitals of ten states in South Sudan (including Juba), including some cursory evaluation of their existing conditions. This project was executed in 2005 by the American firm Creative Associates and the Regional Center for Mapping of Resources for Development. Finally, the Government of Japan extended technical assistance to GoSS in the form of a Physical and Social Infrastructure Development Plan that was prepared in 2007 as part of an emergency program to address the urgent issues in Juba and to propose development projects accordingly. But these are yet to be implemented. 60 D. State of Urban Infrastructure 86. Table 16 summarizes the current state of urban infrastructure in Juba. Table 15: State of Urban Infrastructure in Juba Roads and The total length of roads in Juba is 65 kilometers, of which 11 kilometers are paved. Bridges With the exception of a few main roads that link the airport with the government quarter, most roads are not well maintained. The Ministry has signed contracts to rehabilitate those roads and to increase the length of asphalt-covered roads. The contracts also include drainage ditches, street lighting and 12 new bridges. However, shortages of money and inefficient contractors have slowed progress of the work. Capable engineers to supervise the work are also in short supply. Water A water treatment plant, in operation since 1937, has recently been rehabilitated as part of an emergency rehabilitation program. The plant draws water from the White Nile, treats it through sedimentation and disinfection, and then pumps it through a network of pipes that serves about 40 percent of Juba residents and businesses. Of these, 75 percent are served by individual connections while the rest are served by communal stand pipes from which they fill up utensils. Water vendors also fill up their tanks from those stand pipes and sell water in neighborhoods where individual connections are not available. The quality of water produced by the plant is good; however, the network of pipes is old such and there is appreciable leakage from the system. Consumers are charged a flat rate of 18 SDG (about US$7.50) per connection, which is hardly enough to cover the operational costs let alone that of new installations. Government institutions and the ―organized forces‖ such as the army, police, and so forth usually don't pay their water charges. In remote areas, not covered by the network, bore holes and overhead tanks are used. Alternatively, hand pumps are used to draw sub-surface water where the water table is high. However, the quality of water produced by the boreholes and the hand pumps is less than the treated Nile water and is generally saline. Power A five megawatts power plant was established in 2006, using diesel fuel for electric power generation. A twelve mega watts plant is now being installed, which will make a considerable addition to Juba's power supply and is likely to result in excess capacity that could assist in establishing new industries and services. The Electricity Corporation claims that it supplies power to about 75 percent of Juba 24 hours a day; however, given the rapid expansion of Juba, that percentage may not be valid, and power outages are common. Many businesses, hotels, government institutions have stand-by generators to cater for frequent interruptions in supply. Most of the electric power distribution network is new. It is composed of processed timber poles imported from South Africa and cables. Demand for electricity in Juba is rising as new residential areas, institutions and facilities are being established. Power consumption is metered and users are charged for their consumption. New installations will use pre-paid meters in order to ensure more efficient collection of charges. 61 Solid Waste There is no established solid waste collection system in Juba, with the exception of Management private contractors operating in the central commercial area of Juba town and residential quarters of senior government employees. There are no proper collection containers, no trucks or carts to take it out of town. The practice now is to dump it on road sides and in open spaces; some waste is burned. The majority of domestic waste generated is organic, however this is likely change as households become engaged in the market economy. In some parts of Juba, particularly areas accommodating expatriate workers and upper middle class groups, it is not uncommon to see piles of plastic bottles and metal cans dumped on road sides. There is no solid waste disposal system in Juba—no landfills or waste recycling schemes exist. Any waste trucked outside the city it is dumped in open peripheral areas. Sewerage Since the signing of the CPA, use of bucket latrines is being discouraged, and efforts are being made to encourage the use of pit latrines in residential areas despite possible environmental hazards in areas where the ground water table is shallow and hand pumps are used to draw sub-surface water for domestic use. In some areas, particularly informal settlements and surrounding rural areas, open defecation is still common posing risks of pollution and spread of diseases. In government buildings, houses of politicians and senior employees, septic tanks or cesspools are used. Trucks pump the excreta collected in those tanks to dumping pits outside of towns. GoSS Ministry of Housing, Physical Planning and Environment, intends to acquire more vacuum trucks to improve discharge capacity. In the ministerial quarter and houses of senior employees, there exists a limited system of sewage disposal in the form of two oxidation pumps installed after the 1972 Peace Agreement. There are efforts to rehabilitate those pumps and to install new pumps with more capacities that could act as a sewage treatment facility for large urban areas. Health Juba County has four general hospitals, 20 primary health care units (PHC) and 69 PLCUs. There are about 6 clinics donated and operated by institutions such as the Egyptian and Ugandan governments, and about 20 private clinics run by individual doctors. Health care facilities are not evenly distributed around Juba with some districts lacking any such facility. Resettlement of some internally displaced communities has resulted in the closure of some PHCs and PLCUs. There are severe shortages in doctors. Most facilities require substantial maintenance of buildings, furniture and equipment. Education Most schools have been built by NGOs and turned over to CES government to manage. The schools are not evenly distributed between various districts in Juba. Munuki and the neighborhood lying east of the river are deficient in the number of schools. Pupils in those areas either have to walk long distances to reach schools in other districts, or leave school all together. The Ministry of Education is now preparing a new syllabus in English to replace the national syllabus in Arabic. UNICEF and other international organizations support the provision of school supplies and stationary. 62 E. Municipal Finance 87. Starting in the 2009 fiscal year a new budgeting system has been established whereby each state ministry and each county prepare its budget and submits it to the state Ministry of Finance to amalgamate it into a state budget. According to the CES Ministry of Finance, the state budget for 2008 amounted to SDG 392.9 million (about US$178 million), while that for 2009 is SDG 221 million (about US$96 million). 88. The main sources of revenue for the state government are: (a) transfers from GoSS (which amounted to SDG 44 million, or US$19 million, in 2009); (b) conditional grants from GoSS dedicated to specific sectors or projects (which amounted to SDG 85 million or US$37 million in 2009); and (c) the state's revenue from taxes and fees. The 2009 budget exhibited a huge deficit that has led to inability of GoSS and the CES government to deliver services or even to pay salaries. 89. Juba County depends for its budget on transfers from the CES government and from its own revenue from taxes and fees. One such fee is an annual real estate tax that will be soon be collected in Juba for the first time. This takes the form of a flat fee assessed on the class of the housing area (whether first-, second- or third-class), regardless of the built-up area or the plot size, or the type of building function. Juba County authorities fear that landowners and operators might be reluctant to pay such fees, in spite of its small amount, because they are new to them, and also because they are often obliged to pay a variety of other fees and taxes either to various organs of the CES government, GoSS and to local entities such as payams (e.g. solid waste collection fee) and bomas. The multitude of taxes and fees, often overlapping and repetitive, is likely to be a major impediment for people to pay them. Table 16: Real Estate Taxes in Juba Housing Areas/Class Commercial Establishments Wholesale/ First Second Third Companies Retail Supermarkets Factories SDG 75.00 50.00 25.00 1,500.00 250.00 300.00 1,000.00 US$ 32.60 21.73 10.87 652.17 108.70 130.43 434.78 90. Another form of revenue generating mechanism, that of subdividing land into residential parcels that could be leased out by the County on an annual basis in what used to be called fourth-class residential areas, has now been stopped. This has deprived the County of an important source of revenue. 91. Thus, the County has a very small tax and fee base that doesn't cover its operating expenses and the cost of services it is providing. It is highly dependent on transfers from the CES government and even from GoSS itself, such as in the case of roads and storm drains construction. 63 Works Cited Ahmad, Junaid. Conflict and Local Government. Washington D.C., 2009. Ali, Omer Awadalla. 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