The effectiveness of financial decentralisation in Namibia: a case study of Oshana Regional Council
Thesis (MDF)--Stellenbosch University, 2013.
This study on the effective implementation of financial decentralisation in Namibia has explored how effective the development budget is utilised to address development challenges in Oshana Region. Namibia is faced with different development challenges of unemployment and unequal distribution of income, amongst other issues, and the government has introduced some initiatives to address these challenges. The implementation of the Enabling Decentralisation Policy (Decentralisation Act of 2000), which aims to transfer power, functions and resources to the regional government, can be regarded as a guideline to the effective utilisation of the development budget in Namibia. A qualitative methodology was used to explore the effectiveness of the development budget, since the findings of the research depended on the response of the participants. Financial decentralisation is a new concept in many countries, including Namibia. Purposive sampling was employed and the employees working with the development budget, especially those from the National Planning Commission at the Development Budget Sub-Division, Ministry of Regional, Local Government and Rural Development and the Oshana Regional Council – the custodians of the development budget - were the main sources to provide the required data. The results of the study indicate that there is a lack of proper monitoring mechanisms for the utilisation of development funds at both regional and central government level. Stakeholders from central and regional government do not have data and information of the total amount allocated and executed in Oshana region. The development budget in Namibia, despite the Decentralisation Policy, is highly centralised and institutions are working in isolation, which makes it challenging for the Regional Council of Oshana to effectively monitor utilisation of resources. Lack of capacity and highly complex institutional arrangements are perceived as the main possible challenges impeding the effective implementation of financial decentralisation and utilisation of the development budget in Oshana Region. It is recommended that Government address the challenges identified in this study.