Attachment J.1 Statement of Objectives.pdf

Attachment J.1

USAID Local Impact Governance SOO

ATTACHMENT J.1

STATEMENT OF OBJECTIVES (SOO)

C.1 ACTIVITY TITLE

The activity title is USAID Local Impact Governance (formerly District Governance

Strengthening).

C.2 PURPOSE

Local Impact Governance will help Zambia build up a sub-national system of governance for devolved service delivery more responsive to citizen needs. The program will engage national and sub-national authorities to expand the capabilities of district-level governance bodies to deliver sustainable development outcomes, increase effective citizen and private-sector involvement in development planning and monitoring, and improve public financial management and domestic revenue generation.

C.3 BACKGROUND

While Zambia has built its democratic reputation on contested elections and peaceful changes of power, challenges in effective governance loom large between elections. Among USAID’s global metrics1 for country commitment to achieving self-reliance, Zambia scores lowest on open government, defined as the degree to which the government shares information, fosters citizen participation, and empowers people with tools to hold the government accountable. A visit to almost any community in rural Zambia reveals gaps in these areas.

Citizen input in the planning and monitoring of development interventions tends to be limited and not well integrated, undercutting sustainable results. Coordination across sectors is inadequate for achieving transformative results, even as the central government seeks to devolve service delivery to local governments. Few incentives exist to drive constructive engagement between citizens and government, along with the private sector, in an information-rich feedback loop. Locally generated revenue falls short of what local authorities need to fulfill their defined functions, and fiscal transfers are inconsistent and insufficient. In short, Zambia has a significant need to expand the ownership base for development with resources to match.

Zambia has developed a decentralization policy framework that can turn citizens into catalysts for effective development. The reforms open the way for higher-impact interaction between the grassroots and sub-national stakeholders through traditional and government-mandated structures. A new law, the Local Government Act of 2019, formally mandates citizen-led development coordination structures. The Public Finance Management Act of 2018 aims to improve the transparency and accountability of government expenditures for the benefit of public service delivery. A new fiscal decentralization unit in the Ministry of Finance is attempting to improve fiscal flows to local authorities. And a coherent and inclusive architecture exists to

1 See the Fiscal Year 2020 Country Roadmap for Zambia at: selfreliance.usaid.gov advance the decentralization implementation plan at the direction of the Cabinet Office’s

Decentralization Secretariat.

The Constitution of Zambia, as amended in 2016, declares: “The management and administration of the political, social, legal and economic affairs of the State shall be devolved from the national government level to the local government level.” (Part IX). The Constitution describes a system of local government to which “functions, responsibilities and resources” are transferred from the national level in a coordinated manner, that promotes the “people’s participation in democratic governance,” and which receives “reliable and predictable sources of revenue.”

In practice, devolved governance remains aspirational, with legislation, policy and action – especially regarding the transfer of functions and financial resources – not yet harmonized. The

Decentralization Secretariat, Ministry of Local Government, Local Government Service

Commission, Ministry of Finance and other ministries and agencies, along with local authorities, each are making valuable contributions toward the strategy. Yet the journey requires more momentum to achieve the vision of the Constitution.

Targeted assistance can help to create a stronger sub-national governance system in Zambia, guided by national authorities. This system would enable citizens, government and the private sector to become far more vested in achieving and sustaining key development outcomes.

Local governance structures are not inherently more accountable if mechanisms are not in place to ensure that resources are used equitably and fairly. Linking citizen-led initiatives with government-led enforceability, especially from national authorities, can help sustain momentum and embed new incentives.

C.4 ACTIVITY OBJECTIVES

The activity will work toward three objectives:

Objective 1: Citizens improve their collective skills to effectively assess service-delivery needs and performance and constructively engage with government.

Objective 2: The sub-national governance system becomes more responsive to citizen needs, generates and accountably expends revenue, and improves service-delivery outcomes.

Objective 3: The program generates learning and facilitates problem solving that supports the development of an effective, financially viable sub-national governance system for devolved services, capable of being scaled up throughout Zambia.

C.5 SUCCESS

Successful implementation of this activity will:

• Anchor citizen and private-sector inputs in government planning, budgeting and performance monitoring of public service delivery.

• Strengthen development outcomes through joint problem-solving by local authorities and line ministries.

• Boost own-source revenue and fiscal management of local authorities to more effectively deliver on current functions and build a foundation for devolved services.

• Spread the adoption of good practices and lessons learned to sub-national governments outside of the geographical focal area of implementation.

C.6 KEY STAKEHOLDERS

Based on the above background, USAID/Zambia consulted with key stakeholders, including the

Government of Zambia, local authorities, the private sector, regulators, civil society organizations (CSOs), researchers and donors working in decentralization. The stakeholders agreed on the need to strengthen the local governance system in line with national decentralization goals.

The following list provides key stakeholders and their envisioned respective roles and responsibilities within the USAID Local Impact Governance Activity. Collaboration with these stakeholders will include coordination to avoid duplication and maximize impact, joint learning that benefits Zambian governance strengthening goals, and efforts to advance an effective partnership with the Government of Zambia.

Stakeholder Role

USAID/Zambia Oversight of the performance of the Contract.

Zambian Citizens Catalysts for responsive and accountable governance.

Decentralization

Secretariat

Advisory inputs on the Government of Zambia decentralization implementation plan.

Ministry of Local

Government

Oversight for compliance with the Local Government Act of 2019 and related laws and regulations.

Local Government

Service Commission

Advisory inputs on the staffing and establishments of local authorities.

Ministry of Finance Revenue generation, grants to local authorities, oversight of public financial management, and advancing fiscal decentralization.

Local Government

Association of Zambia

Advocacy for the participation of local authorities in governance strengthening and for advancing decentralization.

Provincial authorities For alignment of interventions to provincial conditions, and for direction from provincial health, education and nutrition officials.

District councils Leadership for district development planning, policy, and implementation, including constituent outreach, oversight of ward development and district development committees.

Traditional authorities To build community support for interventions and encourage involvement in development coordination.

District (Ministry) service providers

Collaboration with local authorities in the transition of service delivery into the local governance system.

Cooperating partners To coordinate interventions in related activities as planned or managed by GIZ, World Bank and the European Union.

C.7 ALIGNMENT WITH ZAMBIA DEVELOPMENT STRATEGY

The United States’ Country Development Cooperation Strategy for Zambia2, spanning 2019 to

2024, calls for partnering with the Zambian Government, civil society and the private sector “to advance the country’s self-reliance through more effective development choices and governance” along with enterprise-driven economic growth and increased resilience for vulnerable citizens.

USAID policy seeks to strengthen local systems and partner government commitment and capacity to plan, finance and implement solutions to a country’s own development challenges.

An important enabler of this are citizens themselves, along with private-sector stakeholders, who have a strong interest in improving conditions so their communities and markets can thrive. Local Impact Governance seeks to unlock the enabling power of civil society and the private sector to help the Government of Zambia advance its development goals and boost inclusive economic opportunity, especially in rural areas.

Development Objective 1 of the Zambia strategy seeks to advance citizen and national self-reliance by more effective and accountable governance. This program will contribute to

Intermediate Result 1.1: Citizen Engagement in National Development Choices

Strengthened and Intermediate Result 1.2: Public Resources More Effectively Used.

As a cross-sectoral activity, Local Impact Governance will contribute to these intermediate results in other development objectives: improved conditions for rural enterprises; more sustainable management of natural resources; strengthened effectiveness, capacity and sustainability of health, water and sanitation systems; and increased capacity and performance of the education system.

2 See the strategy at:https://www.usaid.gov/documents/1860/country-development-cooperation-strategy-cdcs-2019-

2024-0 https://www.usaid.gov/documents/1860/country-development-cooperation-strategy-cdcs-2019-2024-0 https://www.usaid.gov/documents/1860/country-development-cooperation-strategy-cdcs-2019-2024-0

C.8 COMPLEMENTARY ZAMBIA PROGRAMS

USAID Accountable Governance for Improved Service Delivery (2017-2022):

Working in both the Zambian Ministry of Health and the Ministry of General Education, and in coordination with the Ministry of Finance and Office of the Auditor General, AGIS strengthens financial controls, procurement and auditing so that public funds are more effectively used for service delivery. National-level interventions flow into complementary district-level assistance in Lusaka, Eastern and Muchinga provinces customized to needs identified in local assessments.

USAID Let’s Read, Zambia (2019-2024): Operates in 4,250 schools across five provinces

– Eastern, Muchinga, North Western, Southern and Western – to improve early-grade reading outcomes in Zambia’s seven official local languages of instruction. Let’s Read collaborates with the Ministry of General Education, mainly through provincial education offices and district education boards.

USAID Scaling Up Nutrition Technical Assistance (2019-2026): Provides targeted support to district nutrition coordination committees in 13 districts across four provinces to reduce stunting through evidence-based interventions including improved sanitation, dietary diversity and wider access to clean water. SUN TA contributes to the objectives of the

Zambian government's 1,000 Most Critical Days Program, an integral component of the

National Scaling Up Nutrition Program.

Enhancing Local Government Capacity for Development (2018-2021): Works with local authorities in 11 districts (Copperbelt, Lusaka and Northern provinces) to strengthen capabilities for planning and implementing service delivery and devising local economic development strategies. The program, funded by the European Union with co-financing from the U.K. Department for International Development, is a collaborative effort of the Local

Government Association of Zambia, Commonwealth Local Government Forum and Zambia

Ministry of Local Government.

GIZ Decentralization for Development (2018-2021, with planned follow-on program 2021-2024) and GIZ Good Financial Governance (2019-2022): The decentralization program works with local and provincial authorities in Southern and North

Western provinces on integrated planning and budgeting, revenue mobilization, and service delivery, while advising the Cabinet Office’s Decentralization Secretariat and the Ministry of

Local Government. The good financial governance program, a joint effort with the European

Union, provides guidance to the Intergovernmental Fiscal Relations Unit of the Ministry of

Finance to foster dialogue among stakeholders in fiscal decentralization, provide advice on business processes and financial reporting, and the operationalization of the Intergovernmental

Fiscal Architecture, including formula development, and expenditure and revenue assignments.

Good Financial Governance: https://www.giz.de/en/worldwide/20839.html https://www.giz.de/en/worldwide/20839.html

C.9 GUIDING PRINCIPLES

Interventions carried out under Local Impact Governance to achieve the program’s objectives will adhere to the following principles:

Adaptive: Expect a fluid situation and adjust as needed. Use continuous political economy approaches, collaboration and learning to adapt. Manage for change.

Evidence Based: Support all proposed interventions with evidence of their effectiveness, or a robust theory of change that generates evidence.

Simple: Build on existing structures and approaches that work in Zambia. Seek leverage points and catalytic drivers of good governance. Ensure that results are visible to the public.

Scalable: Propose interventions and incentives capable of being scaled up by the Government of Zambia at sub-national levels with limited resources and outside assistance.

Social: Use and strengthen social networks within districts to stimulate information sharing, monitoring and collective action for civic change.

System Centered: Ensure that citizens, government and the private sector are fully engaged.

Boost information flows. Address both citizen-responsive governance and revenue generation.

C.10 OBJECTIVES

Local Impact Governance will focus on the governance system for inclusive decision making and service delivery at the sub-national level in Zambia, while engaging national authorities for oversight, collaboration, learning and compliance with decentralization policies and laws. The program will involve government entities – district- and provincial-level service ministries along with local authorities - as well as citizens, civil society groups, coordination and planning bodies, the private sector and key influencers such as traditional and faith leaders.

The program will operate in at least two provinces to be designated in coordination with the

Government of Zambia during the inception phase. Illustrative criteria for selection will include synergies and collaboration with other U.S. Government investments, the potential fiscal revenue base, and alignment with Zambia’s decentralization implementation plan. The Offeror will propose a technical approach to support the Government of Zambia expanding the program’s interventions into a third province at the mid-point of the program.

In the course of implementation, the program will work with relevant Government of Zambia ministries and bodies to determine the costs, organizational support and human resources required to replicate good-practice approaches and interventions beyond the geographical implementation area into other districts and provinces across Zambia.

Objective 1: Citizens improve their collective skills to effectively assess service-delivery needs and performance and constructively engage with government

The Offeror should consider public access to information, sectoral performance data, social networks, formal and traditional development coordination structures, and social accountability approaches in the context of local incentive structures.

Objective 2: The sub-national governance system becomes more responsive to citizen needs, generates and accountably expends revenue, and improves service-delivery outcomes.

The Offeror should consider the relationships among local authorities, line ministries and central institutions relevant to sub-national governance; evidence-based decision making; own-source revenue generation; inter-government fiscal transfers; transparent financial management and appropriate organizational structures; and performance ratings and methods to incentivize performance.

Objective 3: The program generates learning and facilitates problem solving that supports the development of an effective, financially viable sub-national governance system for devolved services, capable of being scaled up throughout Zambia.

The Offeror should consider contextually appropriate methods, costs and resources; effective ways to promote innovation and adoption; business processes to improve access to financial resources and strengthen devolved services; private-sector engagement; USAID’s approach to collaborating, learning and adapting; and the long-term role of Zambian organizations and institutions.

C.11 INCEPTION PHASE

Local Impact Governance will begin with a six-month inception phase to ensure that interventions are based on the best possible understanding of the context and the evidence of what is likely to work within these conditions.

During this phase the contractor will engage in collaborative planning and field visits with

USAID and key stakeholders including the Government of Zambia to understand political economy and system dynamics, organizational capacity and skill constraints, risks, the nature of the problem and where and how the activity will intervene to achieve its objectives.

This effort will identify and assess existing institutions – public, private, informal, traditional, U.S.

Government (USG) supported and non-USG programs – that could be engaged or assisted to achieve the program’s goals. Possible benchmarks for Government of Zambia involvement and ownership will be explored. The assessment also will examine consequential cultural and gender factors as well as the underlying social networks that shape ground-level decisions.

These are among the questions that USAID and the contractor will probe during the inception phase:

• Which constraints are most consequential? Which catalysts deserve the most attention?

• What are low, medium and high potential interventions for implementation?

• Where are the blockages in information flows in the district governance system?

• What existing participatory approaches for planning and budgeting can be leveraged?

• What should be the sectoral focus and sequencing across the program’s footprint?

• How might sectoral performance data by geography be used to motivate action?

• How will the Government of Zambia facilitate and oversee program interventions?

• What should be the geographic focus of the program?

C.12 GENDER INTEGRATION AND SOCIAL INCLUSION

Gender dynamics in Zambia are a fundamental challenge to equitable civic participation in national development choices. Local Impact Governance is unlikely to overturn entrenched norms during a few years on the ground. However, the program’s technical approach should model techniques that reduce gender-based barriers to improved governance and should support women’s political and managerial leadership. Moreover, the program should identify approaches making headway in Zambia that can be leveraged to promote greater citizen engagement.

USAID strives to promote gender equality, in which both women and men have equal opportunity to benefit from and contribute to economic, social and cultural development.

Local Impact Governance will integrate gender in all interventions. The program will contribute to two major outcomes:

1) Reduced gender disparities in access to, control over and benefit from socioeconomic opportunities and services at the local level; and

2) Increased capability of women and girls to realize their life outcomes in social, political and economic advancement at the local level.

In Zambia, USAID has invested in interventions across health, education, nutrition, agriculture, natural resources conservation and enterprise development to reduce gender barriers to social, political and economic advancement for girls and women. Local Impact Governance will build on these investments in the context of citizen-responsive service delivery and advancing local self-reliance to inform and achieve national development goals and more effective use of public resources.

This program is also rooted in a positive youth development (PYD) approach. PYD programs encourage youth leadership and experiential learning, as well as adult approachability and champions, across four domains: assets, agency, contribution and enabling environment.

Services and opportunities are designed to support young people in developing a sense of competence, usefulness, belonging and empowerment. The Offeror should ensure that youth are engaged in decision making, management and leadership.

In the program’s interventions, social inclusion will encompass cross-cutting social, economic and political issues affecting gender and youth.

C.13 SELF-RELIANCE AND SUSTAINABILITY

This activity exemplifies USAID’s priority goal of advancing partner country self-reliance through the strengthening of local systems and the inclusion of the private sector. This activity will build sustainability into existing government and regulatory structures that will persist beyond the activity’s life in at least two ways. First, the government is committed at both the constitutional and policy levels to supporting a path toward decentralization that strengthens citizen engagement and the organizational and fiscal role of local authorities. This activity will collaborate extensively with the Government of Zambia and associated civil society institutions by strengthening the capacity of the national and sub-national governmental levels to effectively collaborate to improve service delivery and generate local revenue. Second, this activity will improve enabling conditions to support businesses (American, Zambian, regional, etc.) in expanding their markets and investments. This ecosystem of government, civil society and the private sector will sustain and expand the model that Local Impact Governance will build to widen the ownership base for development and achieve more robust and lasting development outcomes.

C.14 ENVIRONMENTAL COMPLIANCE

A categorical exclusion has been reached for this award. The contractor is subject to the terms and condition for Environmental Compliance as defined in Section H.19.

C.15 CLIMATE CHANGE INTEGRATION

Climate change is a cross-cutting issue that can have significant impacts on regional, national, and local development efforts in all sectors. In recognition of this, in 2014 President

Obama signed Executive Order (EO) 13677, which requires all U.S. agencies to factor climate change into their foreign assistance planning and manage the associated climate risks. In addition, a country’s development trajectory can significantly influence its emissions of greenhouse gases that cause climate change.

Climate risk management (CRM) is required for all USAID-supported activities, with limited exceptions. Climate risk has the potential for negative consequences on activity objectives and/or outcomes due to changing climatic conditions. The focus of climate risk management at

USAID is on the risk to USAID development programming. The CRM process may identify potential development opportunities associated with current and expected climatic and meteorological changes, including chances to achieve additional development objectives

(including increasing climate resilience and reducing greenhouse gas emissions).

USAID undertook a preliminary climate risk screening and the results are attached (See

Attachment J.9). The Offeror will be expected to implement the actions identified in the climate risk matrix attached and in addition, the Offer must describe their approach to climate risk assessment and how the assessment will inform activity implementation and adaptive management. Given the challenges posed by climate change, the Offeror will need to articulate practices and interventions that can enable climate-resilient approaches to succeed and support the sustainability of the investments made under this activity.

C.16 SCIENCE, TECHNOLOGY, INNOVATION AND PARTNERSHIP (STIP)

USAID/Zambia is one of 20 Missions recognized as a “Lead Mission” in applying science, technology, innovation and partnership (STIP) to enhance development impact. USAID Local

Impact Governance will explore opportunities for enterprises and entrepreneurs to build up local development while strengthening governance conditions. This may entail opportunities to expand community linkages to Zambia’s burgeoning digital economy in connection with building a more self-reliant local governance system.

C.17 BACKGROUND DOCUMENTS

1. Community Monitoring Interventions to Curb Corruption and Increase Access and

Quality of Service Delivery in Low- and Middle-Income Countries: A Systematic Review https://www.3ieimpact.org/evidence-hub/systematic-review-repository/community-monitoring-interventions-curb-corruption-and

2. Deepening Decentralization in Zambia: Political Economy Constraints and Opportunities for Reform (International Food Policy Research Institute: 2019) https://www.ifpri.org/publication/deepening-decentralization-zambia-political-economy-constraints-and-opportunities-reform

3. The Effects of Sector Characteristics on Accountability Relationships in Service Delivery https://www.odi.org/publications/6766-effects-sector-characteristics-accountability-relationships-service-delivery

4. Participation, Inclusion, Transparency and Accountability (PITA) to Improve Public

Services in Low- and Middle-Income Countries: A Systematic Review https://www.3ieimpact.org/evidence-hub/systematic-review-repository/participation-inclusion-transparency-and-accountability

5. The Political Economy of Community Scorecards https://www.odi.org/publications/6247-political-economy-community-scorecards

6. The Strengthening Decentralization for Sustainability Project in Uganda: A Collaborating, Learning and Adapting Case Study (USAID: 2017) https://usaidlearninglab.org/library/uganda-sds-project-cla-case-study

7. A Systematic Review of Positive Youth Development Programs in Low- and Middle-

Income Countries (YouthPower Learning, USAID: 2017) https://www.youthpower.org/sites/default/files/YouthPower/files/resources/SystematicRe view%20FINAL%209-26-17%20compress.pdf

8. Thinking Socially in World Development Report 2015: Mind, Society and Behavior http://pubdocs.worldbank.org/en/507541482349883762/Chapter-2.pdf https://www.3ieimpact.org/evidence-hub/systematic-review-repository/community-monitoring-interventions-curb-corruption-and https://www.3ieimpact.org/evidence-hub/systematic-review-repository/community-monitoring-interventions-curb-corruption-and https://www.ifpri.org/publication/deepening-decentralization-zambia-political-economy-constraints-and-opportunities-reform https://www.ifpri.org/publication/deepening-decentralization-zambia-political-economy-constraints-and-opportunities-reform https://www.odi.org/publications/6766-effects-sector-characteristics-accountability-relationships-service-delivery https://www.odi.org/publications/6766-effects-sector-characteristics-accountability-relationships-service-delivery https://www.3ieimpact.org/evidence-hub/systematic-review-repository/participation-inclusion-transparency-and-accountability https://www.3ieimpact.org/evidence-hub/systematic-review-repository/participation-inclusion-transparency-and-accountability https://www.odi.org/publications/6247-political-economy-community-scorecards https://usaidlearninglab.org/library/uganda-sds-project-cla-case-study https://www.youthpower.org/sites/default/files/YouthPower/files/resources/SystematicReview%20FINAL%209-26-17%20compress.pdf https://www.youthpower.org/sites/default/files/YouthPower/files/resources/SystematicReview%20FINAL%209-26-17%20compress.pdf http://pubdocs.worldbank.org/en/507541482349883762/Chapter-2.pdf

9. USAID Comparative Assessment of Decentralization in Africa (2010) https://pdf.usaid.gov/pdf_docs/PNADX211.pdf

10. World Social Report 2020: Inequality in a Rapidly Changing World (United Nations:

2020) https://www.un.org/development/desa/dspd/wp-content/uploads/sites/22/2020/02/World-Social-Report2020-FullReport.pdf

11. Zambia Community Health Strategy 2017-2021 (Zambia Ministry of Health: 2017) https://www.moh.gov.zm/docs/Community%20Health%20Strategy.pdf

[END OF SECTION C]

https://pdf.usaid.gov/pdf_docs/PNADX211.pdf https://www.un.org/development/desa/dspd/wp-content/uploads/sites/22/2020/02/World-Social-Report2020-FullReport.pdf https://www.un.org/development/desa/dspd/wp-content/uploads/sites/22/2020/02/World-Social-Report2020-FullReport.pdf https://www.moh.gov.zm/docs/Community%20Health%20Strategy.pdf