Financing Local Government

image of Financing Local Government
Decentralisation is now taking place in the public administrations of most countries of the world. A critical determinant of the effective performance of local governments is finance – their ability to both mobilise financial resources and to use those resources effectively and efficiently.

This book explores the variety of methods used to ensure that fiscal decentralisation takes place alongside administrative decentralisation. It considers the range of revenue sources available, the design systems of intergovernmental transfers between central and local government, and the kinds of rules and procedures necessary to ensure that local governments use their financial resources appropriately.

The experiences described in this book will help local government managers, and national policymakers charged with local government finance issues, to ensure that they follow good practice in their own programmes of local government reform.



Building Citizen Participation and Local Government Accountability

The traditional view of local government is that local electors elect councillors who make decisions about local services and levy local taxes to pay for those services. The only role for citizens is to vote in elections every four years or so and pay their local taxes. This view of local governmental is being increasingly challenged. Citizens expect to have a greater say in the running of services that affect them. They are dissatisfied by the lack of accountability of those they have elected for the taxes they have levied and other resources they have used. And in many countries they are concerned about the level of corruption in local government.


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