Fiscal decentralisation frameworks for Agenda 2030: understanding key issues and crafting strategic reforms

Abstract

Local and regional governments (LGS) will be important actors in ensuring that the UN’s Sustainable Development Goals (SDGs) are translated into action that is tailored to the most pressing needs of their communities. Despite broad recognition of the subnational dimension of the SDGs, the specific roles that LRGs can and should play and the capacities and resources they require have received insufficient official consideration to date. If LRGs are to maximise their developmental impact, countries require robust intergovernmental frameworks and policies that empower, finance, motivate and support local and regional governments and citizens. The paper examines the requirements and options for subnational government finance and provides suggestions for strategic implementation, concluding by linking fiscal decentralisation reforms to the SDGs.

Property rate in Ghana: a poor local revenue source or underexploited potential?

“…Commentators have blamed this state of affairs on a lack of political will at local level to overcome community opposition, and low motivation to collect taxes (Jibao and Prichard 2015). This approach however can be criticised as being reductionist; since other important dynamics are at play, although research seems to have not yet been undertaken (Smoke 2017(Smoke , 2019. The present study attempts to bridge the gap by analysing a number of other variables that influence local-level tax efforts and reform.…”

Promoting inclusive urban economies in a world of changing technology and patterns of trade

“…Demands from local actors in these areas, seeking far greater influence over decisions that affect their lives, has also contributed to driving reform. Key to these processes has been the reform of systems for resourcing local government (Smoke 2017). Although approaches differ substantially, the tendency has been to consider options for enhancing the potential of local revenue generation by municipal authorities as well as improving the funding of urban growth-responsive activities by national and subnational governments.…”

Achieving the Sustainable Development Goals (SDGs) through decentralisation and the role of local governments: a systematic review

“…Evidence shows that decentralisation of functions has often not been accompanied with commensurate decentralisation of financial power (Stone 2015). Although greater decentralisation of taxation leads to increasing electoral accountability of local politicians (Awortwi 2010), inadequate fiscal CJLG 2019 6 decentralisation continues to be one of the most common barriers to local government autonomy (Kroukamp and Leus 2008), and effective service delivery (Smoke 2017).…”

“…Local governments which rely on central or state government for the bulk of their funding, and generate little revenue at the local level must be accountable for their use of resources to the higher level of government rather than the local community in line with the commitment to 'local selfgovernment'. However localisation of the SDGs will also require greater political will to localise access to the necessary resources as repeatedly argued by Smoke (2015Smoke ( , 2017Smoke ( , 2019.…”