Spatial variations in the fiscal capacity of local government in Ghana, before and after decentralisation

Eran Razin*, Nelson Obirih-Opareh

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

This study examines the impact of decentralisation reforms on variations in the fiscal capacity of Ghana's district councils/assemblies. Local governments in the capital city region and in the second-largest metropolitan area were the most financially sound, whereas those in remote regions and rural areas were found to be the least financially sound. The early years of structural adjustment were associated with growing disparities, including the impact of the regressive central grants. However, the fiscal centralisation that accompanied decentralisation reform has reversed this trend. Central grants did not favour the poorer districts, but the disparities in grant allocation were far narrower than the disparities in self-generated revenues, and so a large increase in grants has contributed to the reduction of disparities.

Original languageAmerican English
Pages (from-to)411-432
Number of pages22
JournalThird World Planning Review
Volume22
Issue number4
DOIs
StatePublished - Nov 2000

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