104. Democratic decentralisation was introduced in 1998, with the first-ever local elections being held in 33 municipalities, most of which are mainly rural. The aims were to give decision-making powers and responsibility to people who have a legitimate stake in, and knowledge of, local development needs; to increase community participation in local governance and local economic development; and to increase the speed and flexibility of decision making while generating additional resources and encouraging more efficient and effective use of existing ones. It was also intended to spread the gains of democratisation to local contexts and to improve the effectiveness of central government by providing a check on its performance and curbing antagonisms between central and local institutions. 105. The principal opposition party, RENAMO, boycotted the local elections, citing flaws in the registration process as the reason. Independent slates contested the elections and won seats in municipal assemblies. The turnout was, however, very low. 106. In the aftermath of the 1998 local elections, the government resolved to make greater accommodations for the opposition’s procedural concerns with a view to the second round of multiparty national elections in 1999. Working through the National Assembly, the electoral law was rewritten and passed by consensus in December 1998. Financed largely by international donors, a very successful process of voter registration was conducted from July to September 1999, providing registration cards to 85 per cent of the potential electorate (more than 7 million voters). 107. The second local elections, involving 33 municipalities with some 2.4 million registered voters, were held successfully in November 2003. Five of the 33 municipalities passed peacefully to the RENAMO-led opposition, including Beira, the second largest city in the country. For the first time, FRELIMO, the RENAMO-Electoral Union (RENAMO-UE) and independent parties had been able to compete without significant boycotts and the turnout of 24 per cent was well above the 15 per cent of the first municipal elections. FRELIMO won 28 mayoral positions and the majority in 29 municipal assemblies, while RENAMO won five mayoral positions and the majority in four municipal assemblies. The voting was conducted in an orderly fashion without violent incidents. However, the period immediately after the elections was marked by objections about voter and candidate registration and vote tabulation, as well as calls for greater transparency. 108. The second general election was held from 3–5 December 1999, with a high voter turnout. International and domestic observers agreed that the voting process was well organised and went smoothly. However, both the opposition and observers subsequently cited flaws in the tabulation process that, had they not occurred, might have changed the outcome. President Joaquim 66 A P R M COU N T RY R EV IEW R EP ORT NO. 11