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.

Various forms of decentralization are recently pursued in the world, including developing countries. However, there has not been a coherent framework to access these intended outcomes generated by decentralization measures implemented in Asian and African countries. This book provides such a framework based on comparative analyses of different experiences of decentralization measures in six developing countries, where the policy rationale to “bring services closer to people” originated in different socio-political backgrounds. Although decentralization measures are potentially useful for attaining both political democratization and economic efficiency, what is often packaged under the umbrella of “decentralization” needs to be disaggregated analytically. Successful reforms need coherent approaches in which a range of stakeholders would become willing to share responsibilities and resources in order to achieve the ultimate outcome of poverty reduction in the developing countries.

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.

Local government in Malaysia occupies the third and lowest level after federal and state governments. Under the Malaysian federal constitution (paragraphs 4 and 5 of the Ninth Schedule), local government is the responsibility of the states, but the federal government also exercises considerable power and influence over local government, especially in peninsular Malaysia. The dynamic of the Malaysian federal system is such that it has shifted the balance of power to the centre.Local government accounts for only 1% of GDP. There are 144 local authorities divided into cities (major administrative and commercial centres), municipalities (other urban areas), and districts (chiefly rural areas). Executive powers rest with the Mayor (cities) or President, supported and/or overseen by a system of committees. Currently, local councils in Malaysia are not elected: councillors are appointed by the state government for 3-year terms (with the option of re-appointment) and in most cases come from the ruling coalition.