Since the 1980s, decentralization has improved local development adaption in a number of sub-Saharan African nations. However, in recent decades, this approach of autonomous local administration has encountered challenges, such as a decline in funding. However, CĂ´te d'Ivoire's Law No. 2003-208 of July 7, 2003, on the transfer and distribution of state competencies to local authorities, permits local elected officials to mobilise funds locally by establishing revenue-generating ventures in a number of industries, including tourism. How can local tourism support local development in CĂ´te d'Ivoire's decentralized villages given the country's diminishing financial resources? The goal is to demonstrate how local tourist marketing may serve as a lever for funding local development in the dynamic of enhancing living standards. 200 household heads in neighbourhoods chosen by reasoned choice participated in a questionnaire survey, field observation, direct and semi-direct interviews, and documentary research as part of an empirical method. The municipality of Seguela seems to be brimming with a variety of tourism opportunities. To highlight these potentialities, local officials have undertaken to boost local tourism through the opening of roads, the improvement of potable water supply and electrification, the creation of public spaces for tourist attraction, the cleaning of gutters and street sweeping, and especially the establishment of the "Worodougou LĂ´gĂ´ba" festival, etc. These municipal investments have resulted in: the commercialisation of agricultural products and local cultural craftworks, the emergence of various means of mobility, the attraction of customers to restaurants, maquis, and hotels; thus creating direct and indirect jobs. Due to the increased foreign cash earned by tourist taxes, this has made it easier to optimise local budgetary resources.
Decentralization is a popular idea that is believed to bring improved public service and sustainable growth that is both inclusive and natural. On the other hand, in the case of developing states, the degree to which it works depends mainly on the local political situation and the existing social order. One of the most notable achievements in the Nigerian judicial system has been a historic Supreme Court judgment in 2024 that gave local governments direct financial allocations. Each of the 774 Local Government Areas in Nigeria must now be directly financed to make local governance more effective by limiting state intervention. Nevertheless, this initiative is carried out in a very politicized setting that is at the verge of breaking apart due to the increase of ethnicity after the 2023 elections, and a citizenship policy that perpetuates a two, class system of indigenes and settlers. This paper illustrates how local financial independence, along with the indigene, settler systems, have an effect on the patterns of resource distribution and the provision of public goods and services. Through a mixture of a research paper on the local financial autonomy of LGAs in the South, West and North, Central zones of Nigeria and a theoretical framework based on Peter Ekeh's works "Two Publics" and a ground reality review, it is established that some of the scenarios created by financial autonomy exacerbated local elite capture and exclusion of so, called "long, term residents" who are defined categorically as "non, indigenes." This is evidenced by the findings on disproportionate capital expenditure distribution within wards, and qualitative viewpoints on local narratives about the justification for exclusion and rightful local belonging. The debate will continue on the proposition that if the idea of citizenship is not changed from one based on birth to one based on residency, it will result in local exclusion and development failure. The solution ends with a conclusion on residency, based citizenship and conditionality in the transfer of funds between different levels of governance
Inter-local cooperation (ILC) has long served as a pragmatic governance response in the Philippines, enabling local government units (LGUs) to address policy challenges that transcend administrative boundaries. Yet national experience under Section 33 of the 1991 Local Government Code shows that cooperation has often remained voluntary, procedurally thin, and dependent on Memoranda of Agreement rather than on institutionalized legal personality, pooled fiscal authority, and durable governance systems (Republic of the Philippines 1991; DILG, NEDA, and GIZ 2010; Miels and Mayer 2025). This article examines the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) as a case of subnational legal innovation following the enactment of the Bangsamoro Local Governance Code (BLGC) in 2023 (BAA 49, 2023). Drawing on documentary analysis and national ILC experience, the study analyzes how the BLGC reconfigures statutory authority for interâLGU cooperation and why BLGCâaligned institutions have not yet consolidated in routine practice. The findings show that the BLGC provides one of the most explicit statutory foundations to date for horizontal cooperation â authorizing joint organizations, shared authority, and multiâstakeholder participation â yet interâlocal cooperation in BARMM remains largely MOAâbased at present, reflecting an early, preâinstitutionalization stage (BAA 49, 2023; Miels and Mayer 2025). Interpreting this as reform sequencing rather than policy failure, the article demonstrates that rulesâinâform are in place while the rulesâinâuse required for implementation â procedural clarity, pooled fiscal systems, organizational capacity, and integration into regional governance â are still being developed (Ostrom 1990; Pierson 2000; Mahoney and Thelen 2010). In doing so, the study reframes early implementation gaps as expected features of institutional transition and highlights the BLGCâs broader contribution to modernizing the legal foundations of interâlocal cooperation beyond Section 33, offering insights relevant to decentralization reform and intergovernmental governance in the Philippines.
Abstract Although decentralization is frequently used to improve service delivery and development, the impact of symmetrical fiscal decentralization on local government authorities ( lga s) and fair development has not been thoroughly investigated. Whilst symmetrical decentralization allows lga s to collect revenue and finance development projects, there are disparities among lga s in their ability to collect sufficient revenue and implement development projects. This study goes beyond prior research by investigating the way differences in the financial capacity of lga s affect development in various regions of Tanzania using a review of recent audit reports and studies. Results indicate that while certain lga s have shown a strong ability to collect revenue, others struggle considerably, due to factors such as historical background, revenue sources, population variations, urban-rural divides, and citizen awareness. Furthermore, the intergovernmental transfers, intended as an equalization strategy, have led to lga s remaining highly dependent on the central government and subject to the central governmentâs financial capacity. This study concludes that symmetrical fiscal decentralization in Tanzania has not achieved its intended goals. Despite some lga s over-collecting revenue, most remain heavily dependent on intergovernmental transfers, which are inconsistently distributed and often politically influenced, thus intensifying uneven development trends. The study recommends updating the 1998 policy to integrate asymmetrical decentralization, amending the Local Government Acts of 1982, building capacity to lga s, and shifting the central governmentâs role from controller to supporter.
Somalia's urban growth, particularly in the Benadir region, has intensified over the past decades with driving forces such as population inflow, economic opportunities, and post-conflict rehabilitation.This study analyzes challenges encountered by Somalia's Benadir local government administration, such as urban growth and challenges they experience owing to reasons such as weak infrastructure, lack of finance, and inefficient systems of governance.This rapid urbanisation, however, presents significant challenges to local government management, such as inadequate infrastructure, poor urban planning, limitations on resources, and governance challenges.This study investigates the impact of urban development on local government functioning in the Benadir region, with an emphasis on how municipal governments manage urban services such as housing, waste management, public health, and security under the conditions of limited financial and human resources.The research also emphasizes the demand for better infrastructure, more effective institutional frameworks, and better policies of local governance to manage urban growth effectively.By facilitating sustainable urban development, policy concepts consist of decentralizing resources, developing capability, and establishing strategic partnerships with foreign entities.The research applied qualitative methods to approach, analysing secondary data acquired from kinds of literature of local government officials and leaders and data collected from policy documents and urban development reports.The findings show a gap between rates of urban growth and administrative capacity, leading to such governance challenges as informal settlements, poor public services, and undermined institutional arrangements.Strategic urban planning, enhanced mobilisation of resources, and building capacity are recommended by the report to strengthen local government administration and promote sustainable urban development in the Benadir region.These results contribute to the broader debate on urban governance in post-conflict environments, offering policy implications for Somalia and other developing nations experiencing rapid urbanisation.
Rucitarahma Ristiawan, Edward H. Huijbens, Karin Peters
Research on governance of tourism development predominantly focuses on sustainable management of a tourism destination, pinning hopes on the market and individual entrepreneurs. In Indonesia, this mission has been codified in post-reformation era (1998â2014) policies of land-use change promoting tourism and environmental conservation. One of these is the introduction of the UNESCO Geopark charter as a tool to realize the image of a modern state and âmodernizingâ regional economies. In this, a particular patrimonial governance arrangement appears to govern land use distribution to accrue the potential value of land from different use. This particular clientelist order will be analyzed in this article, namely by examining how finance, state power, and informal interactions between the national and regional structures of governance mesh in arranging land-use conversions for tourism purposes. Based on 4 months of ethnographic fieldwork and 32 interviews with various stakeholders in the Gunungsewu and Ciletuh UNESCO Geoparks, the paper will show how Indonesian post-reformation decentralization policies induced regional clientelism in the production of tourism destinations. This includes hierarchical relations between the local elite, private business owners, and governments representing asymmetric loyalty relations, negotiated subordination, and dominance. The more recent re-centralization attempts from the national government under Joko Widodoâs regime seem only to encourage this clientelism as a form of resistance to the state. This evidences that the Indonesian patrimonial governance and the production of tourism destinations in geoparks run counter to the ideals in governance as promoted for destination development.
Local government units (LGUs) in the Philippines are authorized to borrow or incur debts to finance development, but with certain limitations provided by the Local Government Code of 1991. The main controlling statutory requirement is for provinces, cities, municipalities, and villages not to exceed 20% of their annual regular income going into debt servicing. The range of purposes for which local governments are allowed to borrow are tied up with their expenditure responsibilities, and this varies according to the type and level of LGU, and their capacity to access financing. These commonly include capital investment projects, socioeconomic enterprises, and self-liquidating and income-generating projects. This paper describes the experiences of the Philippines after close to three decades of fiscal decentralization in the country, presents trends and patterns of local debt management practices, highlights the roles of national government agencies and regulatory policies, and proposes emerging ideas and recommendations on how to improve debt management as an important pillar in local finance and decentralization.
Decentralization reforms and rapid urbanization place increasing pressure on African urban authorities. In response, land-based finance has been gaining popularity within development discourses as a method of increasing local autonomy and financing local government infrastructure provision. This paper discusses the conceptual basis for land-based finance, the instruments that form part of this approach, and the actual application in several African cities. Drawing on three case studies (Addis Ababa, Harare and Nairobi) and a high-level scan of 29 developments in various African cities, we show how land-based finance is being implemented in practice and discuss the potential for wider uptake. We conclude that African city governments are using land-based financing, albeit in inconsistent ways. We argue that urban authorities should consider the more extensive and progressive use of land-based financing instruments, despite the constraints imposed by both technical and political conditions. A progressive agenda for local government finance in African cities should take land-based finance seriously, as well as the local practices and institutional arrangements through which it operates.
Ghanaâs industrial sector has evolved with the various stages of political and economic reforms since independence in 1957. Efforts to decentralize its key institutions to enhance economic growth has seen very little success especially in the area of linking industries to local institutions. Recently, the economy has been dampened by worsening macroeconomic environment, huge regional disparities and power crises. A number of policy and programme initiatives by the government have been undertaken especially in the area of revamping the local economies through the existing decentralized systems. This paper presents a critical review of the role of decentralized institutions in industrialisation in Ghana. The paper utilises annual data from the Ministry of Finance and Ghana Statistical Service from 1981 to date to show trends in growth patterns in the selected indicators.Despite key interventions, some regions in Ghana have failed to develop. The envisioned industrial geographical dispersion has not been realised as we find many Ghanaian industries concentrated in a few regions. The paper highlights the challenges facing Ghanaâs decentralized institutions and identifies the opportunities that can catalyse the growth of Ghanaâs industrial sector if key policy strategic reforms are undertaken. An industrial-led growth will ensure that the manufacturing sub-sector will be boosted to improve production and provide jobs. Industrialisation has been projected at the forefront of governmentâs development agenda. The paper provides a review that highlights the need to support decentralised institutions to enable them stimulate investment in industrial sector.
Micro Financing Institutions (MFIs) loan provision to poor is proving as a key strategy for poverty alleviation and inadequate access to credit by the poor has been identified as one of the contributing factors to poverty. To this end, this studies aims at assessing linkages between MF loans Provision in line with local economic development and provide basis for policy formulation at regional and national level in regard to MFIs and LED. To attain this objective, studies from Ethiopia and other countries have been reviewed. Empirical reviews showed that these institutions provided opportunities for self-employment; improved women's security; autonomy, self confidence and status within the society and household; helped in improving childrenâs Education. Above all, as pro-poor program; they targeted the most vulnerable groups in society, particularly women, who remain confined to households with little or almost no assets. In Ethiopia, great efforts are being made since last two decades by expanding MFIs loan provision services to the various groups of the people specifically the poor to facilitate poverty reduction effort. Despite the increasing reliance on MFIs as one of the instrument to reduce poverty in Ethiopia; very little work has been undertaken to examine the linkage of the microfinance expansion with local economic development (LED) strategy of the particular region. The studies reviewed revealed that there has been duplication of business undertaken in various parts of the region. This is due to lack of linkage and synergy of the loan provision by MFIs to the LED strategy of a given local area in particular and regions in general. The reviewed literature indicated that on account of decentralization of the development plan to optimize the potential of each region and mobilize resources; the local governments have been empowered to undertake social and economic development endeavor. It has also been found that, the Growth and Transformation Plan (GTP) (2010/11-2014/15) and LED were closely aligned. The interconnection between GTP and LED existed directly through the micro-small scale enterprises (MSE), cooperatives and other associations. Since LED aims to create efficient and functioning local economies as a consequence it has a direct alignment with growth and transformation efforts. Therefore, linking the microfinance loan provision to the local development priority appeared is very critical for the sustainability of the MSE businesses to benefit from local available potential resources for poverty alleviation program. Empirical evidences reflected that the current urban policy, the MSE strategy and the regional development framework provided additional opportunities for the implementation of LED and creating synergy between MFIs & MSE in Ethiopia. In light of the above view, the current MFIs loan provisions and local development priority of various regions as very important point of emphasis unseen in Ethiopia. Moreover, the findings of the study revealed that there is clearly identified lack of synergy between MFIs, MSE, Cooperatives Agency, Local administrative apparatus and LED in various regions in Ethiopia. This necessitates the stakeholders have to set policy that fills up the gap and create strong linkage between MFIs loan provisions to LED priority of particular regions to assure the sustainability of MSE businesses; and enhances the contributions of MFIs for poverty alleviation in Ethiopia. All in all, the researcher recommends that both Federal, regional government and other concerned stakeholders to work towards digging deeper to find keys to success. Key words : MFIs Loan Provision, Linkages, LED strategy
A hallmark of post-apartheid South Africa has been the introduction of bold and innovative policy in areas ranging from the national Constitution to resource management policy. In line with this approach, there has been a clear commitment to principles of decentralization and participatory development, with Local Economic Development (LED) featuring prominently in national, provincial and local government pronouncements and planning. Despite considerable policy and funding support for LED, results at best can be described as only modest. This paper critically reflects on the importance attached to LED in South Africa, what has been attempted over the last decade, and the various reasons that might explain the limitations experienced with applied LED, including those that are inherent in the nature of LED and those that can be attributed to local factors. The paper draws upon field-based research undertaken over more than a decade and the findings of a major study undertaken by an international development finance organization. The paper raises challenging questions about the nature, focus and potential of LED as an appropriate development intervention.
IntroductionThe challenge for land use management in the nineties is to initiate a people- centered development process which creates opportunities for local people to make their own choices about which development strategy to follow. This need is felt in particular for upland areas where government initiated blue- print programmes for land use management have a record of failure. The major reason is that these programmes are often not adjusted to cope with the complexity and diversity of the uplands. Land use management encompasses both short-term and longterm benefits and is confronted with rapid changes. The differing role of private, state and communal lands in combination with a complex system of control and utilization makes land use management difficult to fully understand. This study responds with the development of an alternative strategy for planning sustainable land use programmes at local level and has the following objectives:- to develop a strategic model for people-centered planning of sustainable land use programmes;- to develop a flexible planning method that can serve as land use management tool at local level;- to test the feasibility of the strategy for the uplands of East Java, Indonesia.Strategic modelThe two major principles of the strategic model are:- Programmes are planned and implemented through a learning process in a local and organizational dimension. The local dimension includes a learning process of planning, implementing and monitoring of small scale programmes. The planning process is short, but planned interventions are regularly adjusted based on new insights and changing conditions. In the organizational dimension the learning process proceeds through three different phases of trial, development and expansion. In this dimension, the government can learn how to manage the strategy of implementing local level planning and how to change attitudes, norms and organizational competence of organizations in order to do so. This dimension embraces local, regional and national governments.- Three major variables have to be considered in programme planning: land use system; interventions and organizations. Sustainable land use programmes are only possible if a good fit between these variables is achieved.In the strategic model these two principles are combined; a fit between the variables is achieved through a learning process. Because achieving a fit between the three variables is a complicated matter, it requires a phased approach which consists of the following three steps: a trial phase, a development phase and an expansion phase. In the trial phase, the focus is on achieving a fit between interventions and land use system in the local dimension. This is achieved through the implementation of trial cases in local level planning in which villagers, field workers of organizations and local leaders become acquainted with this new approach of planning sustainable land use programmes at a local level. In the development phase, attention is focused on achieving a fit between organizations and land use system. Through the development of human resources and extension processes the skills and attitudes of those involved may gradually change to become more people-oriented. In the expansion phase the focus is on achieving a fit between interventions and organization. In this phase the planning approach is accepted and applied at a national level. Changes in government structures and procedures, such as decentralization and strengthening of local leadership need to be achieved. By dividing the process into phases, the complex problems associated with planning sustainable land use become manageable, and step by step the ultimate goal of achieving a fit between all three variables can be reached.Planning methodIn order to reach an optimal fit between the three variables of the strategic model in the trial phase, a planning method should be applied to collect and analyse data that can be transformed into the design of effective programmes. No 'off-the-peg' planning method is available, instead a combination of existing approaches, methods and techniques is needed.Three development approaches can be distinguished to this end: planning of land use development; extension approaches and project management approaches. Generally speaking, each approach covers a different side of the strategic model. Land use development focuses on achieving a fit between interventions and land use system; extension processes can be used in achieving a fit between land use system and organizations; and the fit between interventions and organizations can be accomplished with the help of project management techniques.For planning land use development in the trial phase a number of current methods and techniques are discussed. These are Farming System Analysis, Land Evaluation, Agroecosystem Analysis, Landscape Planning, Rapid Rural Appraisal and Gender Analysis. The criteria set by the strategic model determine which aspects of these present planning methods and techniques are useful for the development of a new planning method. None of these methods and techniques as such are ideal as an operational planning method for realizing the first phase of the strategic model. A synthesis of all useful features into a new land use planning method is proposed.For the trial phase the focus is on planning land use development while opportunities to develop extension processes and to influence project management are limited. Therefore plans should basically be tailored to the existing competence of organizations. Within these limitations some attention can be paid to extension processes and management techniques by introducing an additional step to land use planning, called programming which includes the preparation of a detailed design and a programme planning matrix.Planning environment on JavaThe environment for the planning of land use development programmes is diverse and complex in the uplands of East Java. Farmers react to the wide diversity in the land use system by developing a large number of different land use strategies. By contrast, government organizations use standardized programmes with uniform and mostly inflexible procedures for planning and implementation. Village development planning procedures exist, but do not yet function properly. Local organizations responsible for village development planning do not yet possess the skills and capability to develop such plans, and centrally organized sectoral agencies still dominate this 'bottom-up' planning process. The dominance of the central government can be explained by the incorporation of a number of socio-cultural features in their policy, such as the principles of 'sole authority', consensus, and harmony. The government uses these principles to encapsulate autonomous local organizations in the government administration, orienting the local leaders more to government rules and procedures than to the needs of the local population.This orientation towards government administration has two major implications for the current planning of interventions. Firstly, the interventions are adjusted to the competence of implementing organizations rather than letting the organizations develop their competence to implement the tasks of locally planned interventions. Secondly little more than lip-service is paid to the participation of villagers in planning.Notwithstanding these shortcomings in the present village development planning process, official government policy has some room for improvement. This may allow for a more balanced planning process new approach.Secondly, constraints which can be expected while applying the model on Java are described. The feasibility of the trial phase of the strategy is evaluated based on experiences with implementing the trial cases on Java. In this evaluation the question is raised as to what extent the results of local level planning on Java can respond to the research objectives as formulated at the start of this study. No experience has been gained as yet with implementing the development and expansion phase. One programme that provides some valuable lessons for the feasibility of the phased learning process of the strategic model is the Java Social Forestry Programme (JSFP). This programme has followed a comparable phasing strategy and has already reached the expansion phase.Conclusions and policy recommendationsThis evaluation results in a number of conclusions on conditions to be fulfilled for successful implementation of the strategy. To sum up:- although the strategy is aimed at the local level, it cannot be realized at local level only as it requires involvement of regional and national government organizations to deal with changing communication processes and organizational structure;- objectives in village development planning should be set realistically in the knowledge that short term results will always dominate long term benefits, tangible results will get higher priority than social changes, while top-down influences from sectoral agencies will prevail;- in addressing the organizational dimension a choice should be made between following an approach of 'decentralized trial cases' versus 'centrally guided bottom-up process'. Whichever strategy is chosen it needs careful management to avoid difficulties in institutionalization or a too rapid expansion respectively;- it is necessary for the government to be shown better results in terms of sustainable land use development programmes at local level implemented by highly committed villagers. Only then may they be motivated to accept such a participatory approach at the cost of losing some power or consensus;- implementing a participatory planning process is an initially slow process, to which government agencies need to be committed.These conditions are translated into a number of policy recommendations for donor agencies and governments pertaining to: long-term and continuous com
The author explains mechanism of local economy functioning and distinguishes three sets in this mechanism: decentralized, centralized and mixed sets. Taking into account conditions of local economy functioning, in which local authorities are decisive subjects (local administration and people's councils) the author formulates an opinion that postulates on decentralization, which are stated in discussions, practically refer to substitution of centralized set with mixed set â and not decentralized one â of local economy. Centralized set can not be fully abolished even when mixed set is a predominating set of local economy functioning. Anyway it does not eliminate the possibility of competence expansion of leading local authorities. In such situation decentralized set of local economy functioning, in strict meaning of the word, can play a marginal role only. The author considers in a broad way the role played by financial factor in local economy functioning. A special attention is paid to dissimilarity of financing principles in particular sets of this economy, because efficiency of the reform considerably depends on proper knowledge about these principles.