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Promoting Good Governance with Social Funds and Decentralisation


A Parker  (2001)
4 pages (123KB)

Corruption, lack of transparency and accountability, poorly designed decentralisation, inadequate service delivery and social exclusion can all direct resources away from the poor, needy, and powerless to the rich, replete and dominant. Two types of World Bank support for local governance are social funds and broadly based support for governments committed to decentralising responsibility and power to local governments and other local institutions. But there are concerns that these two approaches sometimes work at cross-purposes.

This PREM Note, produced for The World Bank, argues that social funds and decentralisation processes must work together to strengthen services and reduce poverty through improved local governance. The Note examines the aims and models of the two approaches, and the need for mutual support. How these two approaches can best work together is then explored. The Note concludes that as more countries decentralise social funds need to integrate their operations with local planning and budgeting.

Source: Parker, A., 2001, ‘Promoting Good Governance with Social Funds and Decentralisation’, PREM Notes Number 51, January 2001, World Bank, Washington D.C.

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