Question 3: What are the political economy challenges facing urban authorities in developing countries in generating revenue from local sources? What are some solutions?
Local authorities all over the world are playing an increasingly important role in the delivery of fundamental basic public services. But they are also facing huge challenges, in particular the widening gap between the availability of financial resources and municipal expenditure needs. Local authorities in many developing countries, cities and towns could generate increased revenue from local revenue sources by improving the efficiency of revenue generation and by implementing innovative, revenue-generating mechanisms. What are the key challenges facing local authorities in developing countries’ cities in revenue generation, and what are some solutions to these challenges?
Please post your response below.