This commentary reviews contemporary changes in aid modalities and their impact on processes of decentralization. The main change in aid delivery and disbursement considered is towards a greater emphasis on general budget support (GBS) and sector wide approaches (SWAPs). This includes considering the broad questions of firstly, the impact of emphasising GBS on local government and governance systems, and secondly, the extent to which processes of decentralization can fit in with this new approach.

Local government in Malaysia occupies the third and lowest level after federal and state governments. Under the Malaysian federal constitution (paragraphs 4 and 5 of the Ninth Schedule), local government is the responsibility of the states, but the federal government also exercises considerable power and influence over local government, especially in peninsular Malaysia. The dynamic of the Malaysian federal system is such that it has shifted the balance of power to the centre. Local government accounts for only 1% of GDP. There are 144 local authorities divided into cities (major administrative and commercial centres), municipalities (other urban areas), and districts (chiefly rural areas). Executive powers rest with the Mayor (cities) or President, supported and/or overseen by a system of committees. Currently, local councils in Malaysia are not elected: councillors are appointed by the state government for 3-year terms (with the option of re-appointment) and in most cases come from the ruling coalition.

The Commonwealth Local Government Forum (CLGF) was established in 1994, coinciding with rapid moves towards decentralisation at that time, especially in Commonwealth Africa. It uniquely brings together national associations of local government and individual councils, ministries responsible for local government, and training and research institutes with an interest in local government, on a common platform. This reflects an understanding that local government needs effective central government and vice versa if decentralisation is to be truly successful, and that research, training and practice need to be brought together in a constructive and creative way. CLGF’s developmental work can be divided into three main categories: Promotion and advocacy of local democracy and good governance, Exchange of experience and Capacity building.This article provides a brief overview of the activities and projects which CLGF has underway in respect of these objectives. It will be complemented by more detailed papers on specific programmes and projects in this and future issues of the Commonwealth Journal of Local Governance.

The Commonwealth Local Government Forum (CLGF) Pacific Project works with local government and other stakeholders in nine Pacific Island countries – Cook Islands, Fiji Islands, Kiribati, Samoa, Papua New Guinea, Solomon Islands, Tonga, Tuvalu and Vanuatu. It seeks to strengthen local democracy and good governance, and to help local governments deal with the increasing challenges of service delivery and urban management in the unique Pacific environment. Human settlement patterns in the region are changing rapidly. The Pacific has traditionally been a rural agricultural/subsistence society, but this is no longer the case. The accelerated pace of urbanisation has impacted significantly on Pacific nations and in the very near future the majority of Pacific Islanders will be found in urban areas. Already over 50% of Fiji’s population are urban dwellers. Rapid urbanisation brings with it unique challenges and opportunities. Local governments are at the forefront of this phenomenon, with the responsibility to manage urban development and the transition from rural areas to cities and towns. Their success or failure to manage urbanisation and provide the required levels of physical and social infrastructure will affect many lives in a new urban Pacific. The project now has three components – the main Pacific Regional Project and two country-specific programmes: the Honiara City Council Institutional Capacity Building Project and the Commonwealth Local Government Good Practice Scheme in Papua New Guinea.

"Vice-chancellors have a responsibility to get down and say that we're prepared to reform the sector in the following sensible and constructive ways … rather than going back in a traditional way and saying, 'Give us more money and leave us alone'. We will get nothing simply by asking for more money.” The Australian Labor Party went to the 2007 election promising a new era of cooperative federalism that would end the ‘blame game’ between federal and state governments and re-energise reform and productivity agendas. On the evidence of the Council of Australian Governments (COAG) meeting on 26 March 2008, these agendas are advancing rapidly. The communiqué foreshadowed a raft of new commonwealth-state agreements, streamlined arrangements for special purpose grants and, perhaps most significantly, performance criteria for payment of at least some of those grants.2