Tanzania has embarked on several radical measures to restructure its economy and governance structures, including local governments. For more than four decades, Tanzania has been striving relentlessly for effective decentralisation measures, yet the progress has been slow. The country has passed through several phases of decentralisation, with each phase inheriting some criticised characteristics that have been difficult to dismantle in the successive phases. For example, previously recognised mistakes have continued to block any attempts to diverge from the direction set by the Ujamaa policies. It is argued here that various attempts at decentralisation by the central government since the 1960s in Tanzania have fallen short of the government’s intentions to establish effective local governance. This being the case, two important questions prevail: Why has Tanzania made little progress towards effective decentralisation, despite various attempts to devolve powers from the centre? Why has Tanzania not fully decentralised, as echoed in the policy paper on Decentralisation-by-Devolution (D-by-D)? There have been a number of explanations for this retardation along the path to decentralisation. This article reflects upon the tenability of path dependency theory which posits that the longer an institution has been in place, the more resilient it is to change.

The Imperative of Good Local Governance is a true state-of-the-art volume in the field of local governance, decentralization and local democracy summarizing a substantial part of the insights from original research in the last decade. It is also a future-looking volume with explicit policy relevance, paving the way for innovative thinking (and acting) on the next phase of development in the field. In a unique way it brings together authoritative contributions from authors that to a large extent have been defining the field for the last decade or more. From a theoretical perspective it is adjoining top–down and bottom–up rationalities, which is further illuminated through a wide variety of key case studies. The case studies are selected for their relevance for the theoretical perspectives offered, as well as for their paradigmatic power in the current global evolution of decentralized policies and politics. The volume concludes that overall, local development and local politics will not go away – it has a huge potential – but also that the field is full of unfulfilled promises, some of which could be remedied through the perspectives revealed in this volume.

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.