While decentralisation is often seen as an instrument for conflict transformation, little attention has been paid to whether and when it can mitigate or exacerbate conflict. This paper from the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) examines the connections between decentralisation and violent conflicts and consequent implications for decentralisation policy making and implementation. To avoid unintentional escalation of conflict, development cooperation should pay greater attention to decentralisation/conflict interactions and strengthen the involvement of central government and civil society.
Decentralisation of power to local government can defuse conflicts, since local/regional governments understand local conflict causes, can facilitate minority participation and enable bottom-up reconstruction of states. However, since decentralisation involves redistribution of power, it can give rise to new conflicts. When central government relinquishes competencies through decentralisation and can no longer act as arbitrator, opposing interests can collide. Transfer of fiscal competencies can bankrupt some incompetent municipalities; some regions receive preferential treatment by central government. Decentralisation can also unintentionally foster the cementing of power of local ethnic majorities.
The following determinants of conflict-sensitive decentralisation can mitigate potential conflict during the transfer of power from central to local/regional governments:
- Support by central and sub-national elites can help construct a majority decision by parliament to support decentralisation. Ongoing policy dialogue among all stakeholders can help construct its legal framework.
- These elites can also promote ongoing institutional reforms and inform policy dialogue among all stakeholders that will help secure the legitimacy of decentralised roles and responsibilities.
- A strong local elite that actively supports decentralisation can shoulder responsibility for public service delivery and regional development.
- Promoting civil society and its participation in the decentralisation process can foster the settlement of conflict by non-violent means and prevent conflict around issues of corruption and lack of transparency in public administration.
- Decentralisation requires continuing central government leadership and oversight of local and regional administration. Capacity building in order to implement decentralisation is necessary at central, regional and local levels.
- Local/regional authorities need to be provided with reliable income. Attention should be paid to equitable distribution of financial resources between and among regions. Without sufficient financial resources, regional and local authorities cannot perform their newly assigned tasks.
Development actors should pay greater attention to interactions between conflicts and decentralisation to avoid conflict escalation (according to the principle of ‘do no harm’). In addition, they should:
- Explicitly promote the participation of civil society and traditional authorities.
- Contribute to creating platforms for non-violent settlement of conflict and alliances for peace.
- Focus more on strengthening central administration operational capacity and advocate additional institutional reforms.
- Support the flow of resources from the central to local level and between regions.
- Pay greater attention to expectation management and termination criteria.
