Financing the decentralization of urban services in developing countries: Administrative requirements for fiscal improvements

Rapid urbanization in developing countries is placing increasing strains on the financial capacity of governments to provide the urban services and infrastructure that will be needed to promote sustainable economic growth. The growing complexity of urban systems in developing countries and the financial constraints on central government agencies are pressuring governments to decentralize a wider range of responsibilities for financing and providing public services in urban areas. Experiments with five approaches to local finance in many developing countries have focused more on revenue generation than on strengthening the administrative capacity of local governments to manage new responsibilities. The success of decentralization and of local revenue generation in the future, however, will depend on strengthening the ability of local governments to manage revenues and expenditures more efficiently and to maintain urban services more effectively. Dennis A. Rondinelli is senior policy analyst and principal scientist in the Office for International Programs at the Research Triangle Institute, PO Box 12194, Research Triangle Park NC 27709. Dr. Rondinelli has served as an advisor to governments in developing countries and international assistance organizations on public administration, municipal management and urban development policy, subjects on which he has published ten books and more than one-hundred articles. His most recent books includePlanning Education Reforms in Developing Countries (Duke University Press),Urban Services in Developing Countries, (Macmillan), andDevelopment Administration and U.S. Foreign Aid Policy (Lynn Rienner).     

Implementing decentralization programmes in Asia: A comparative analysis

Decentralization in development planning and administration is being attempted in novel ways as governments seek to generate economic growth and at the same time achieve greater social equity. Little has been done to assess comparatively the nature and effectiveness of these experiments. This article is based on a selection of eight case studies, each set in a different Asian country, where an innovative approach to decentralization has been adopted by the central government in order to achieve development aims. The stimulus to innovate is considered, the different forms of decentralization compared and a tentative comparative evaluation is made of the effectiveness of decentralizing development planning and implementation. What the analysis shows is that despite diversity in the objectives and differences in the forms decentralized programmes took there were common problems centring on administrative capability. This, the author argues, has important implications for governments and international agencies.