Despite growing fiscal devolution, efficient and effective intergovernmental transfers – the transfer of money from central to lower levels of government – remain a vital sub-national government financing in developing countries. This research study examines different approaches to intergovernmental transfers (ICTs) in developing countries in the Commonwealth, and assesses their relative strengths and weaknesses. It includes detailed case studies of India and Kenya, lessons learned from IGT systems in Australia and the United Kingdom.

The purpose of the study was to carry out an assessment of local democracy and local governance through benchmarking Aberdeen principles on the local government system in Rwanda to appreciate the achievements and establish gaps and suggest appropriate recommendations for future improvement. As laid in the terms of reference, the study was guided by research questions for each of the 12 principles, which include, Constitutional and legal recognition for local democracy, political freedom to elect local representatives, partnership and cooperation between spheres of government, defined legislative framework, citizens participation in local decision making, open local government – accountability, open local government – transparency, scrutiny of the executive, inclusiveness, adequate and equitable resource allocation, equitable services viii and capacity building for effective leadership. The said Aberdeen principles were used to analyse and assess Rwanda’s local government system vis a vis the Aberdeen principles. In terms of methodology, the study employed extensive desk research, analysing local democracy and local governance structures, systems policies and processes in Rwanda. Evidence was collected and collated through wide-ranging literature review with limited field research.

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.

Municipal Infrastructure Financing provides an overview of the municipal finances and the extent of private sector involvement in the delivery of municipal services in selected Commonwealth developing countries. Four cities are examined in detail: Dar es Salaam in Tanzania, Kampala in Uganda, Dhaka in Bangladesh, and Karachi in Pakistan. The book presents some innovative options for alternative sources of municipal infrastructure financing, including attracting private sector participation, based on the successful experience of other developing countries. It also identifies the key challenges in municipal financing, and any broad institutional and financial strengthening measures that are required to tap alternative sources of financing for growth-oriented municipal investments.

Decentralisation is now taking place in the public administrations of most countries of the world. A critical determinant of the effective performance of local governments is finance – their ability to both mobilise financial resources and to use those resources effectively and efficiently.

This book explores the variety of methods used to ensure that fiscal decentralisation takes place alongside administrative decentralisation. It considers the range of revenue sources available, the design systems of intergovernmental transfers between central and local government, and the kinds of rules and procedures necessary to ensure that local governments use their financial resources appropriately.

The experiences described in this book will help local government managers, and national policymakers charged with local government finance issues, to ensure that they follow good practice in their own programmes of local government reform.