Local Government History
In February 2000, the Djibouti government and Front pour la Restauration de l'Unite et de la Democratie (FRUD) signed a peace agreement in Paris. This agreement finalized 1994 peace accords and called for “real devolution” to increase the autonomy of regions dominated by FRUD. A further agreement was reached in May 2001 to put an end to the uneasy aftermath to the Afar insurgency in northern and southwestern Djibouti. The agreement centered on "decentralization" in which the government promises to set up more representative local authorities. In execution of the agreement, the legislature removed limits on political parties in September 2002, and also adopted a new decentralization law that increased the authority of regional governments.
Djibouti is a highly urbanized, with 81% of it people living in urban areas. The country is divided into five political units called districts (cercles). These are: 'Ali Sabih, Dikhil, Djibouti, Obock, and Tadjoura.
Local Government Budgetary Reform
In October 1995, the government initiated a program of fiscal decentralization to increase development and public services. The United Nations Development Project operates several programs that promote decentralization in Djibouti with financial support from the World Bank and the European Union.
Reform: Fiscal Decentralization
The government places a high priority on decentralization in the national cabinet, having created the position of Ministerial Delegate to the Prime Minister for Decentralization that was later added to that of the Minister of the Interior.
The Ministry of the Interior and Decentralization announced in November 2005 that the country’s first local elections would be conducted on December 30, 2005, but they had to be postponed for lack of adequate preparation.