Commonwealth Local Government Forum

Europe \ 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.

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The Smart and Simple Way to Empower the Public Sector

How can it be that people who should have the most fulfilling jobs in the world are generally far less engaged and productive than those we encounter in the private sector? The root causes, we believe, are organizational cultures that are strangled by rules. Myriad rules define the public-sector workplace—rules spelling out procedural red tape, layers of decision making, regulatory compliance, and employee safeguards. These rules are put in place for the best of reasons, such as to ensure fair hiring practices and prevent corruption, favoritism, and the influence of special interests. But as rules proliferate, they often congeal into inefficient, costly bureaucracies that slow decision making, stifle initiative, discourage cooperation, and frustrate employees.

Author: Jason LaBresh, Mark Watters, and Sachpreet Chandhoke Publisher: BCG Perspectives Publication year: 2017


The impact of smart technologies in the municipal budget: increased revenue and Reduced expenses for better services

This document is the result of the discussions held during the 2016 Uraía Workshop which took place in Nicosia, Cyprus on April 19 and 20th, 2016. It is a working paper made in collaboration with the participants who attended the workshop including representatives of local governments, city networks, service and technology providers, civil society, international organizations and research institutes from all around the world. It gathers general recommendations on the use of SMART technologies to improve municipal finances and it is based on the participants’ experiences.

Author: Mariana Nascimento Collin Publisher: UraĆ­a Platform Publication year: 2017


Resource guide on decentralisation and local government

This resource guide provides practical guidance for designing, implementing and evaluating decentralisation reforms and local government practices to ensure they are as effective as possible. It also synthesises and presents current debates on the impact of decentralisation and local government on poverty reduction, service delivery and conflict as well as providing links to cutting-edge research and recent case studies.

Author: Zoe Scott and Munawwar Alam Publisher: Commonwealth Secretariat Publication year: 2011


REVIEW NOTE: Local Government Reform and Local Government Finance

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.

Author: Brian Dollery Publisher: Commonwealth Journal of Local Governance Publication year: 2009


Structural reform, revenue adequacy and optimal tax assignment in local government

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.

Author: Lorenzo Robotti, Brian Dollery Publisher: Commonwealth Journal of Local Governance Publication year: 2009


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