The Emerging Regions of Ethiopia suffer from extreme poverty There is a serious lack of capacity to implement the decentralisation programme as a first step towards poverty alleviation. The main causes of this situation include (a) the absence of clear and detailed Regulations as an interpretation of national policy and law on decentralisation, to implement the assigned functions at Woreda and Kebele levels; (b) inappropriate structures and processes to deliver the most rudimentary infrastructure and services; and (c) an absence of the most basic infrastructure and services in the four regions to support socio-economic development.

This programme therefore seeks to address these issues through five interventions: New regulatory provisions; Policy reviews; Local government capacity; Local development funding; and Local economic development. UNDP will fund the ‘soft’ side of investment, including capacity building. UNCDF will provide the seed-capital, through a local development fund (LDF), which will include associated institutional reforms in public expenditure management (PEM). Additional funds are anticipated through bilateral partners. The programme will focus on the regional, woreda (district) and kebele (village) levels of local government. The programme will be executed by government, and supported with focused programme personnel.