A new paper by the Institute on Municipal Finance and Governance (IMFG) examines issues of decentralization and infrastructure funding responsibilities in developing countries.
IMFG Paper No. 16 by Roy Bahl of Georgia State University and Richard Bird of the University of Toronto and IMFG, examines whether developing countries should shift infrastructure investment responsibilities to local and state level governments. Called “Decentralization and Infrastructure in Developing Countries: Reconciling Principles and Practice,” the paper concludes that while theory supports decentralization, two critical preconditions must be in place: the clear assignment of infrastructure responsibilities to local governments and effective accountability mechanisms.
The IMFG Papers on Municipal Finance and Governance are designed to disseminate academic research undertaken in Canada and abroad on municipal finance and governance issues. The series includes papers by Canadian and international scholars and graduate students, and are archived on IMFG’s website: https://www.munkschool.utoronto.ca/imfg/resources/?cat=10.