Local Resource Mobilization in Developing Countries

Abstract

"As the problem of financing the day-to-day operation and maintenance of local services has become more apparent, there has been increased interest in the role local governments can play in mobilizing the resources necessary to cover these recurrent costs. Over the past few years the Syracuse University Local Revenue Administration Project and other groups have devoted considerable effort in learning more about such resource mobilization. While much has been learned, there are still areas of uncertainty due, in great part, to the vast differences in institutions , culture and economic base encountered in different developing countries. At the heart of the current knowledge of local resource mobilization is the role played by incentives—-incentives to local government leaders, incentives to bureaucrats and incentives to local citizens. The system must provide the proper Incentives in order for resource mobilization efforts to succeed. Research in countries as poor as Burkina Faso has shown that local citizens are willing to contribute their own funds for such local public services as education and health from which they feel they will realize valued benefits."