Constraints in Policy Harmonisation between Central and Local Governments

Policy harmonisation between the central and local governments is a crucial component in ensuring the effectiveness of development programmes and the achievement of national goals. However, in practice, this harmonisation is often hampered by various obstacles that require serious attention and effective solutions.

The main obstacle in policy harmonisation is often caused by sectoral and regional egos. Each sector and region tends to focus on their own interests, which often conflict with national or other regional interests.

These sectoral egos create difficulties in harmonising policies holistically, as each sector or region seeks to maximise benefits for themselves without regard to synergies with other sectors or regions.

Another problem that exacerbates policy harmonisation is the existence of overlapping and not always aligned regulations between the centre and regions. These conflicting regulations cause confusion in policy implementation, hamper the effectiveness of development programmes, and create conflict between different levels of government.

The gap in fiscal and non-fiscal capacity between regions is also a significant obstacle. Regions with lower fiscal capacity often struggle to implement policies designed at the central level, while more developed regions may be more focused on their own local agenda. These capacity differences exacerbate inequities in the achievement of development goals.

Local political dynamics and leadership turnover also affect policy sustainability. Changes in leadership often lead to shifting priorities and weaken commitment to agreed policies, hindering consistent achievement of development goals.

Policy harmonisation also faces challenges in terms of consistency between planning and budgeting, as well as between national, ministerial/agency and regional development planning.

Safeguarding instruments for development implementation and control have not been effective, and the implementation of national development risk management has not been optimal. Public communication to build ownership and stakeholder participation has also not been well established.

Policy harmonisation between central and local governments is a complex challenge that requires attention and coordinated efforts. Obstacles such as sectoral egos, overlapping regulations, capacity gaps, and political issues must be overcome with a strategic and collaborative approach.

Source: Bappenas