Decentralization and Municipal Finance

This BBL demonstrated the relationships between decentralization, strengthening municipal finance and CDD, and how they can be mutually reinforcing.

The goals and benefits of CDD relate closely to a decentralization agenda. Effective decentralization rests on the assumption that local governments are accountable; people can "vote with their feet"; information is equally available; and monitoring of local government is possible. Thus, the top-down approach of decentralization is contributing to setting the framework for the bottom-up approach of CDD to be effective and meaningful. These two approaches are complementary and it is important that they meet in the middle.

There are three key linkages between decentralization and CDD:

1. CDD's role in building skills and accountability;
2. The strengthening of communities so as to support effective local government (i.e. building from the bottom) rather than creating parallel structures; and
3. The strengthening of the overall framework and its stability so as to play a key role in empowering communities.

In summary, where the big picture is not supportive of CDD, there can only be a marginal effect and benefit of CDD.

 Presentation "CDD = exercise of community control" (362k ppt)

 Notes from the BBL (10k pdf)