Executive Summary: "Subnational governance institutions and central-local relations are critical to the future of Myanmar, and they are undergoing significant change. This report aims to inform policy-makers, political actors, donors, and other stakeholders about the new state and region structures created under the 2008 Constitution, and their relationship with broader governance, peace and decentralization processes.1 These new subnational governments have started to open political space, but they face significant limitations. While the presence of partially-elected bodies at this level is a major reform, they face capacity constraints. The executive at state and region level is still dominated by a top-down appointment process, and ministers have little control over the administrative apparatus, limiting the effectiveness of the new governments. State and region budgets are as yet small, and prepared in a way that reinforces central influence. Further reforms are needed to align the new political structures with administrative and fiscal arrangements, broaden the scope of decentralization to more significant areas, and link it with wider democratization, peace and public administration reform processes...The study aims to answer three broad questions: * What is the constitutional, legal and institutional framework for state and region government, and what is the policy direction of decentralization reform? * What are the outcomes of these reforms in the states and regions, and how do they vary? * What challenges, opportunities and ways forward are there to improve subnational statebuilding, service delivery and conflict management?".....Table of Contents: ACKNOWLEDGEMENTS... A NOTE ON NAMES... GLOSSARY... EXECUTIVE SUMMARY... ONE: INTRODUCTION: BACKGROUND AND OBJECTIVES; CONCEPTUAL FRAMEWORK; RESEARCH METHODS... TWO: THE STATE AND REGION GOVERNANCE FRAMEWORK: MYANMAR?S SUBNATIONAL ADMINISTRATIVE STRUCTURE; STRUCTURE OF STATE AND REGION GOVERNMENTS UNDER THE 2008 CONSTITUTION; INTERPRETING STATE AND REGION GOVERNMENT STRUCTURES; THE SUBNATIONAL GOVERNANCE REFORM ENVIRONMENT ... THREE: THE ADMINISTRATIVE DIMENSION: STATE/REGION DEPARTMENTS ; UNION MINISTRY OFFICES AT STATE AND REGION LEVEL ; MYANMAR?S ADMINISTRATIVE BACKBONE: THE GENERAL ADMINISTRATION DEPARTMENT... FOUR: THE FISCAL DIMENSION: STATE AND REGION BUDGETING; POVERTY REDUCTION FUND; STATE AND REGION REVENUES; ASSESSING FISCAL DECENTRALIZATION... FIVE: THE POLITICAL DIMENSION: CHIEFMINISTERS; STATE AND REGION CABINET MINISTERS; STATE AND REGION HLUTTAWS; PUBLIC OUTREACH BY STATE/REGION GOVERNMENTS AND HLUTTAWS; POLITICAL PARTIES AT REGION AND STATE LEVEL... SIX: CONCLUSIONS AND THE ROAD AHEAD: ASSESSING DECENTRALIZATION TOMYANMAR?S STATES AND REGIONS TO DATE; DECENTRALIZATION AND THE PEACE PROCESS; DECENTRALIZATION AND DEMOCRACY; TOWARDS A STATE AND REGION GOVERNANCE REFORM ROADMAP?; NAVIGATING THE POLITICS OF REFORM... ANNEX I: REGION OR STATE LEGISLATIVE LIST (SCHEDULE TWO)... ANNEX II: STATE AND REGION LEGISLATIVE ACTIVITY... ANNEX III: TAXES COLLECTED BY REGION OR STATES (SCHEDULE FIVE).