Commonwealth Local Government Forum

Asia \ Local government finance

Resourcing local government remains a central challenge to effective decentralisation. This section has content relating to different models of fiscal decentralisation, options for identifying new sources of local revenue, such as local property tax; and strategies for improving collection and deployment of own-source revenue. It also offers information about improving the borrowing potential of local government, innovative financing models such as municipal bonds, shared services, and public private partnerships.

Sub-topics:

  • Fiscal decentralisation
  • Financial management
  • Innovative financing models
  • Local/own-source revenue generation
  • Financing infrastructure
  • Public private partnership
  • Green finance
  • Property tax

Featured

Combating COVID-19 in Rural Bangladesh: The Role of the Local Government

As one of the most densely populated countries in the world, Bangladesh is severely vulnerable to the COVID-19 pandemic. In the rural areas of Bangladesh, health security is a great challenge and it has now been further intensified under the present circumstances. Despite the government announcing several packages to help the poor, implementation has not been effective due to the lack of coordination in the local administration. This is further stymied by undue influence of local government officials, nepotism and corruption, resulting in misappropriation of relief funds for the poor rural dwellers. The government has shown zero tolerance towards the accused masterminds under Section 34 (1) of the Local Government (Union Parishad) Act 2009. However, this pandemic requires proper disaster management planning through the integration of the various activities at the local and national levels.

 

Author: Mohammad Tarikul Islam Publication year: 21 April 2020


Achieving the Sustainable Development Goals (SDGs) through decentralisation and the role of local governments: a systematic review

This paper is about the role of local democracy and governance to achieve the sustainable development goals (SDGs). Increased reliance on locally generated revenue, difficulties in managing networks of actors with diverse goals and objectives, imperfect flow of information, and trust deficit in stakeholders pose major challenges to achieving SDGs locally. By doing a systematic review of the recent literature on decentralisation with examples from different local governments, the paper outlines ways in which these challenges could be addressed. The paper also highlights the need for enhancing local leadership capabilities and demarcation of responsibilities among local politicians and bureaucrats, a point missed in the SDG agenda.

Author: Joydeep Guha, Bhaskar Chakrabarti Publisher: Commonwealth Journal of Local Government Publication year: 2019


THE CHALLENGE OF LOCAL GOVERNMENT FINANCING IN DEVELOPING COUNTRIES

This report – an outcome of an expert group meeting held on the challenge of local government financing in developing countries – documents both the challenges and solutions related to the ability of local governments to mobilize revenues from local resources. The report also identifies successful governance mechanisms for efficient and equitable provision of public services in metropolitan areas of developing countries, and shares experiences and methods to making public service provision more viable in peri-urban areas of large cities and in smaller urban centres of these countries.

Author: United Nations Human Settlements Programme (UN-HABITAT) Publisher: United Nations Human Settlements Programme (UN-HABITAT) Publication year: 2015


Municipal Finances A Handbook for Local Governments

This book reviews lessons learned about intergovernmental relations, metropolitan finance, financial management, revenues management, expenditures management, public assets management, external funding, and municipal finances performance measurement. It spans the arc from decentralization to transparency and accountability and travels the less-charted waters of assets management, creditworthiness, response to financial crisis, reporting mechanisms to various levels of government and civil representation. 

Author: The World Bank Publisher: The World Bank Publication year: 2014


Local Government Finance: The Challenges of the 21st Century, Second Global Report on Decentralization and Local Democracy

This report builds on the 2008 First Global Report on Decentralization and Local Democracy (GOLD I), which provides a broad based overview of local government systems around the world. GOLD II focuses on a specific aspect of decentralization—the fiscal architecture and performance of local governments. This topic was chosen for GOLD II because fiscal architecture is fundamental to ensuring that local governments can deliver public services and function successfully in meeting other essential responsibilities.

Author: United Cities and Local Governments Publisher: United Cities and Local Governments Publication year: 2010


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