Commonwealth Secretariat Local Government Reform

2310-1350 (online)
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This series offers guidance on various aspects of reform of local government, for use by senior managers in local government, policy-makers in ministries of local government, and students and researchers in public administration with an interest in local government issues.
Municipal Infrastructure Financing

Municipal Infrastructure Financing

Innovative Practices from Developing Countries You do not have access to this content

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Commonwealth Secretariat
01 Feb 2010
9781848590366 (PDF)
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  • Foreword

    Municipal Infrastructure Financing is the second title in the Commonwealth Secretariat’s Local Government Reform Series. Books in the series offer guidance on various aspects of local government reform to public sector policy-makers, senior managers at central and sub-national levels, as well as students and researchers in public administration with an interest in local government issues. Each volume distils contemporary thinking and good practices from around the Commonwealth, in a readable and accessible form.

  • Introduction

    Today cities and municipal governments all over the world are faced with the same primary challenge: where to find the money to meet the growing demand for infrastructure development? As urban populations grow, the deficit between the demand for services and the ability of governments to supply those services gets wider. Our greatest challenge in the twenty-first century must be to try and build sustainable cities. In order to do this, we need to better understand what it will take to deliver sustainability. To date this has not been done particularly well. This publication sheds a very important light on the urban development canvas. Namely, how are some cities and municipalities in the Commonwealth dealing with the challenges of finding the resources to meet their infrastructure development needs?

  • Abbreviations, acronyms and Currency equivalents
  • Editor's Acknowledgements

    As the principal architect of this project, I have an obligation to acknowledge and give recognition to all of those who have supported me in making it a success. I owe gratitude and appreciation to a number of people for their contribution and assistance in one form or the other, and I am grateful to all of them.

  • Overview and Outline

    This book is based on a study commissioned by the Commonwealth Secretariat on municipal infrastructure financing in selected Commonwealth countries. The study was undertaken by the Cambridge Economic Policy Associates (CEPA). It was intended to inform the policy community on the key constraints in financing municipal infrastructure and services in Commonwealth developing countries, and present some alternative infrastructure funding options based on illustrative success stories globally.

  • State of Municipal Finance in Commonwealth Developing Countries

    It is expected that most of the increase in the world’s population until 2030 will be absorbed by urban areas. In sub-Saharan Africa, the urban population, 270 million at the time of writing, has increased at an annual rate of about 5 per cent since 1980 and is expected to reach 630 million by 2030. Over a similar period, the urban population in Asia will rise from 1,570 million to 2,670 million. As urban growth continues unabated, an increasing number of Commonwealth (developing) countries have assigned greater autonomy and responsibility for infrastructure and service provision to local governments. The unprecedented urbanisation coupled with the growth in population presents a challenge to government authorities in providing adequate infrastructure facilities and services.

  • Tanzania – The Case of Dar es Salaam

    This chapter considers the state of municipal finances in Tanzania, focusing in particular on municipal infrastructure finance in Dar es Salaam. It first sets out the country or macro-economic context, then provides the background on the framework for decentralisation and local government finances. The chapter goes on to analyse the municipal finance situation and the approach to infrastructure financing in Dar es Salaam, concluding with a summary of the key findings of the case study.

  • Uganda – The Case of Kampala

    This chapter reviews the state of municipal finances in Uganda, focusing on municipal infrastructure financing in Kampala. In particular, it sets out the country macro-economic context, outlines the framework for decentralisation and local government finances and assesses the municipal finances, and the approaches to service provision and infrastructure financing in Kampala.

  • Pakistan – The Case of Karachi

    This chapter sets out the context of local government finances in Pakistan and reviews the state of municipal infrastructure financing in Karachi. It describes the country’s economic and local government framework in an urban context, along with the framework for decentralisation and local government finances. The section goes on to focus on the state of infrastructure finance and private sector participation in municipal service delivery in Karachi.

  • Bangladesh – The Case of Dhaka

    This chapter reviews the state of municipal finance in Bangladesh. The chapter focuses in particular on the practices of municipal infrastructure financing in Dhaka. It first sets out the country’s macro-economic context, before outlining the framework for decentralisation and local government finances. The chapter ends by reviewing in detail the municipal finances and approach to infrastructure finance in Dhaka.

  • Innovative Approaches to Municipal Infrastructure Financing

    The four case studies presented in previous chapters underscore the growing financing requirements of sub-national governments. This section considers some of the market-based financing initiatives that have been undertaken by sub-national entities in emerging markets and developing countries to finance municipal infrastructure and public services. It first sets the context for market-based financing and discusses the salient issues relevant for a change in financing approaches. The chapter then goes on to discuss different financing mechanisms that have proven successful across developing countries.

  • Conclusion

    As mentioned in the introductory chapter, this book seeks to identify some of the key challenges in municipal infrastructure financing and to provide broad suggestions for financial and institutional strengthening of sub-national governments so that they can mobilise alternate, including private, sources of financing for infrastructure investments. The sections to this chapter describe some of the key challenges of and the suggested financial strengthening measures to mobilise private sector financing for sub-national infrastructure projects.

  • References and Index
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