A fiscal decentralisation strategy for innovative local government financial management in Botswana

[摘要] ENGLISH ABSTRACT:Decentralisation is a growing phenomenon worldwide. However, the detail of itsimplementation determines whether desired objectives are achieved or not. The thesisextensively interrogates this concept from economic, philosophical and politicaltheoretical perspectives, with emphasis on the economic rationale. An internationalperspective has also been utilised for informing the investigation. Reference is made,in this regard, to both federal and unitary states of the developed and developingworld.Botswana, a unitary and developing African country, has been found to be facingmore or less the same challenges that undermine the desired benefits of fiscaldecentralisation in all developing countries. However, political maturity (which is aprerequisite for decentralisation reforms) - a predictably stable commodity inBotswana -sets it apart from most other developing, if not all, African countries.With regards to decentralisation, a number of considerations framed the analysis.Firstly, the established consecutive approach to Botswana 's centralised economicplanning and management has been found to be counter-productive to the financialdecentralisation process. This has resulted in an over-regulated local public sectorthat is not conducive for taking stock of local initiative and being innovative in localaffairs, mainly due to an ambiguous institutional framework. Secondly, an ad hocfinancial transfer mechanism, that is neither stable nor predictable, clearlyundermines integrated financial management and strategic fiscal planning atmunicipal level. Thirdly, a one-size-fits-all approach to the assignment of expenditureresponsibilities to all municipalities, small and large, as well as urban and rural,serves as another constraint. Finally, a lack of stable and buoyant sources of ownrevenues, as well as inadequate capacity to utilise fully the already existing internalrevenues, has created grant economies that survive on a principle of beggar-thyneighbourto actualise their mandates. This? in turn undermines their? significancefor the electorates at local level who turn to the national government even for minorlocal issues that should be addressed within the areas of local jurisdiction.The thesis concludes with recommendations regarding a redesign of the institutionalframework, intergovernmental financial transfers, expenditure assignments andgeneration of internal revenue.It is critically important that the Government of Botswana should develop a strongpolicy framework, build a strong consensus within the political and bureaucraticcircles and coordinate and integrate these reforms through strong capacity-buildingmechanisms at local governments. Finally, the capacity of the national government tomonitor the process cannot be overemphasised. That is, the decentralisation processshould initially be centralised with gradual decentralisation processes to allow forflexibility well aware of the fact that decentralisation structures are always intransition.

[发布机构] Stellenbosch University