This paper provides an overview of the efforts of successive Zambian governments to transform and institutionalise democratic local governance, and to come to grips with the socio-economic development challenges facing the country. It assesses the progress and challenges that governments are facing in their efforts to transform local government into democratic, developmental local governance.

Cities are assets, solutions and drivers of economic and social development. Cities possess huge untapped economic potential that can and should be leveraged to create wealth and economic opportunities for all. This requires good urban planning that supports urban compactness, integration, and connectivity. However, even the best urban plans risk ending up unused if they are not accompanied by financial and regulatory strategies for implementation. Strategic public investments must go hand in hand with strategic funding mechanisms and supporting governance systems. 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.

The Association of Local Authorities of Tanzania (ALAT) is 30 years old. it is the association that represents officials of local authorities in Tanzania at both the elected and appointed levels with its mandate being to promote the system of local government decentralization in Tanzania, lobby for the rights of its members, provide a platform for the exchange of information and skills, and provide capacity bulding opportunities for its members. aLaT has established a relationship with the Federation of Canadian Municipalities, Municipal Partners for Economic development Program (MPEd), and the Local Government Management association of British Columbia. (LGMa). Within the framework of MPEd the partners have embarked on a capacity building program to strengthen the capabilities of aLaT to support its members through improved knowledge management, the exchange of best practices, a well as engagement in program monitoring and evaluation. if aLaT is able to develop and deliver affordable and practical skill based training for its members this will lead to the achievement of the following objectives:

The multi-faceted problem of local government finance has attracted increasing attention in the new millennium. The reasons for the renewed interest in this thorny question are comparatively straightforward. In the first place, for the past two decades all public sector institutions have been profoundly affected by the twin revolutions simultaneously sweeping the world – the globalization of the international economy and the information revolution wrought by the computer age – and local government is no exception. Not only have these inexorable forces had dramatic implications for the structure of government as a whole, and relationships between the different tiers of government, but also for service provision and public finance, including local public finance. Secondly, substantially heightened demands on local government, together with limited access to adequate funding, have seen the genesis of a deepening crisis in the financial sustainability of local government entities.

A striking feature of local government reform in many Commonwealth countries has been a heavy reliance on structural reform, often in the form of forced local council amalgamation. This paper argues that the long-run success of structural change in local government hinges on several key factors, not least that voluntary rather than compulsory council mergers have a far greater chance of success. A second key ingredient resides in a high degree of local autonomy in both the composition and operation of decentralized governmental functions. A third vital factor lies in ensuring that revenue and tax assignment is sufficient to provide local government with financial autonomy. Finally, adequate powers of taxation need to be accorded to local government and this requires careful consideration of the types of taxes most suited to local government.