Local Governments Role In Promoting Economic Growth PDF Download

Government performance in the pursuit of development objectives is influenced by all the levels of government, and effective public sector management depends on the ability of the central government to harness the resources of lower levels of government. Local governments should be given elastic revenue sources, those that grow as the economy grows and that are not beyond their administrative capacity to collect. Personnel performance at the local level improves when one or more of the following elements is present: (a) well planned horizontal or vertical integration of personnel systems; (b) adequate compensation and incentives; (c) a determined effort to make officials accountable for their performance; (d) effective training of local officials. The division of responsibilities between levels of government needs to be carefully examined before a plan can be constructed for the improvement of local government. Some degree of continuing centralization is necessary, but level of government should be matched with suitability for particular functions. New institutional arrangements may be needed if local government is to be strengthened. A major obstacle to such reform is the absence of a holistic view that argues for integrating the efforts of all levels of government.