Unit 1 introduction defining the context of development financing
This presentation is the property of its rightful owner.
Sponsored Links
1 / 21

UNIT 1:INTRODUCTION (DEFINING THE CONTEXT OF DEVELOPMENT FINANCING) PowerPoint PPT Presentation


  • 73 Views
  • Uploaded on
  • Presentation posted in: General

UNIT 1:INTRODUCTION (DEFINING THE CONTEXT OF DEVELOPMENT FINANCING). Decentralization, Decentralized Planning & Fiscal Decentralization. What do You Understand by Decentralization?. Decentralization, Decentralized Planning & Fiscal Decentralization.

Download Presentation

UNIT 1:INTRODUCTION (DEFINING THE CONTEXT OF DEVELOPMENT FINANCING)

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Unit 1 introduction defining the context of development financing

UNIT 1:INTRODUCTION (DEFINING THE CONTEXT OF DEVELOPMENT FINANCING)


Decentralization decentralized planning fiscal decentralization

Decentralization, Decentralized Planning & Fiscal Decentralization

What do You Understand by Decentralization?

UNIT 1: INTRODUCTION


Decentralization decentralized planning fiscal decentralization1

Decentralization, Decentralized Planning & Fiscal Decentralization

What is the Purpose of Decentralization?

  • Failure of centralized systems to deliver efficiently

  • Decentralization has the potential to ensure a more equitable distribution of resources

  • It is part of the good governance/democratisation agenda

  • It is supposed to engender popular participation in decision-making

UNIT 1: INTRODUCTION


Decentralization decentralized planning fiscal decentralization2

Decentralization, Decentralized Planning & Fiscal Decentralization

What are the Various Types of Decentralization?

1.Administrative Decentralisation

  • Transfer of public service delivery functions from central government to local governments, field offices of MDAs, etc

  • Two main types:

    • Delegation

    • Deconcentration

UNIT 1: INTRODUCTION


Decentralization decentralized planning fiscal decentralization3

Decentralization, Decentralized Planning & Fiscal Decentralization

What are the Various Types of Decentralization?

2. Economic Decentralization (Divestment)

  • Transfer of economic planning, production, distribution or other economic functions from government to voluntary, private or non-governmental institutions.

  • Examples:

  • Privatisation (a.k.a. Market Decentralisation)

  • Deregulation:

UNIT 1: INTRODUCTION


Decentralization decentralized planning fiscal decentralization4

Decentralization, Decentralized Planning & Fiscal Decentralization

What are the Various Types of Decentralization?

3. Political Decentralisation:

  • Transfer of political power from central governmentto lower-tier authorities.

  • Devolution is the ultimate form of political decentralization

UNIT 1: INTRODUCTION


Decentralization decentralized planning fiscal decentralization5

Decentralization, Decentralized Planning & Fiscal Decentralization

3. Political Decentralisation (cont.):

  • Devolution:

    • Full transfer of resource mobilization and allocation responsibilities from central government to an quasi-autonomous, sub-national public authority that is fully independent of the devolving authority

    • Usually culminates in the establishment and empowerment of local governments that is accountable to the local population.

    • Usually involves the establishment of a legal and regulatory framework

UNIT 1: INTRODUCTION


Decentralization decentralized planning fiscal decentralization6

Decentralization, Decentralized Planning & Fiscal Decentralization

What are the Various Types of Decentralization?

  • Decentralized Development Planning

  • It is the transfer of development planning (and implementation) functions and powers from central government to local governments, communities and other sub-national entities.

UNIT 1: INTRODUCTION


Decentralization decentralized planning fiscal decentralization7

Decentralization, Decentralized Planning & Fiscal Decentralization

What are the Various Types of Decentralization?

  • Fiscal Decentralisation:

  • The restructuring of existing systems of resource mobilization and allocation with the aim of empowering local government authorities to perform their decentralized functions

UNIT 1: INTRODUCTION


Decentralization decentralized planning fiscal decentralization8

Decentralization, Decentralized Planning & Fiscal Decentralization

What are the Various Types of Decentralization?

  • Fiscal Decentralisation (cont.):

  • Fiscal Decentralisation may include:

    • Formulas for transferring revenue to local govts;

    • Legally empowering local govtsto collect and retain some taxes, fees, etc;

    • Legally empowering local govtsto prepare their own budgets and disburse funds

  • It is a key ingredient for successful devolution.

UNIT 1: INTRODUCTION


Overview of ghana s decentralization policy

Overview of Ghana’s Decentralization Policy

Some Key Features:

  • Re-demarcation of administrative jurisdictions (metropolitan areas, municipalities and districts)

  • Establishment of Metropolitan, Municipal and District Assemblies

  • Establishment of sub-district structures: Town/Area Councils, Unit Committees, etc

UNIT 1: INTRODUCTION


Overview of ghana s decentralization policy1

Overview of Ghana’s Decentralization Policy

Some Key Features (cont.):

  • Restructuring of resource allocation and resource sharing b/n central and local govts

    • E.g. District Assemblies Common Fund, land rates and minerals royalties, grants, transfers, and external credits to local governments

  • Designating MLGRD as the agency responsible for implementation of the decentralisation policy

UNIT 1: INTRODUCTION


Overview of ghana s decentralization policy2

Overview of Ghana’s Decentralization Policy

Some Key Features (cont.):

  • Establishment of NDPC to co-ordinate decentralised development planning

  • Establishment of structures and mechanisms to enhance probity, accountability and transparency in public administration at all levels of government

UNIT 1: INTRODUCTION


Overview of ghana s decentralization policy3

Overview of Ghana’s Decentralization Policy

Main Components of Ghana’s Decentralization Policy

  • Political decentralisation

  • Administrative Decentralisation

  • Decentralized Development Planning

  • Fiscal decentralization

UNIT 1: INTRODUCTION


Overview of ghana s decentralization policy4

Overview of Ghana’s Decentralization Policy

Main Components of Ghana’s Decentralization Policy

A. Political decentralisation

  • Re-demarcation of the country into districts

  • Establishment and empowerment of the RCCs, MMDAs & the Sub-District Structures to perform various functions

  • Establishment of the MMDAsas legislative, administrative, planning, service delivery, budgeting and rating authorities

  • Sub-district structures to facilitate resource mobilization and popular participation

UNIT 1: INTRODUCTION


Overview of ghana s decentralization policy5

Overview of Ghana’s Decentralization Policy

Main Components of Ghana’s Decentralization Policy

B. Administrative Decentralisation

  • Restructuring of ministerial institutions and transferring defined functions, powers and resources to local govts

  • Integration of sectoral programmes, resources and assets into the Assembly system

  • Restructuring of 22 deptsinto 16, 13 and 11 deptsunder the Metropolitan, Municipal and District Assemblies respectively

  • Passage of a Local Govt Service Act to bring all employees of the MMDAs into the public service.

UNIT 1: INTRODUCTION


Overview of ghana s decentralization policy6

Overview of Ghana’s Decentralization Policy

Main Components of Ghana’s Decentralization Policy

C. Decentralised Development Planning

  • A bottom-up, integrated and participatory development planning system.

  • Planning at district level, sub-district and sectoral levels coordinated by the DPCU

  • RPCUs responsible for harmonising and synchronising district devtplans based on national development policy framework and guidelines issued by NDPC

  • Development of service centres as well as rational, efficient and sustainable settlement and land use patterns

UNIT 1: INTRODUCTION


Overview of ghana s decentralization policy7

Overview of Ghana’s Decentralization Policy

Main Components of Ghana’s Decentralization Policy

D. Fiscal Decentralisation

  • Meant to enhance the Assemblies’ access to resources

  • Creation of the DACF , allocated based on a formula prepared by the Administrator of DACF and approved by Parliament

  • Establishment of ‘MPs Common Fund’

  • Ceding of income tax payable by informal sector operators, vehicle operators, and betting, entertainment and advertising companies to the MMDAs.

UNIT 1: INTRODUCTION


Overview of ghana s decentralization policy8

Overview of Ghana’s Decentralization Policy

Main Components of Ghana’s Decentralization Policy

D. Fiscal Decentralisation

  • IGF sources of the MMDAs: user fees, rates (basic and property), licenses, investment incomes, loans/overdrafts, etc

  • Submission of MMDA budget to the RCCs for harmonisation, co-ordination and collation and approval of by Min. of Finance.

UNIT 1: INTRODUCTION


Financial capital as one among several capitals needed for development

Financial Capital as One among Several ‘Capitals’ Needed for Development:

  • Finance (or Financial Capital)

  • Natural Capital

  • Human Capital

  • Institutional Capital

  • Social Capital

UNIT 1: INTRODUCTION


Discussion question

Discussion Question

  • What kinds of knowledge about Development Financing does the Planner require?

  • Why should Planners be Knowledgeable about Development Financing?

UNIT 1: INTRODUCTION


  • Login