Subnational governments must have adequate powers and financial instruments to deliver on their citizens’ expectations. Citizens must want and expect their local government to provide services and infrastructure, and they must expect to pay for it. For municipal bonds to be a sustainable infrastructure financing mechanism, subnational governments must be creditworthy and there must be a supportive institutional, legal and regulatory framework. The article demonstrates that the political, institutional and regulatory environment that empowers or constrains the use of municipal bonds and other borrowing tools is complex. Comparing the situation in these two countries with one another, and with the long-established municipal bond market in the United States, we explore how context affects outcomes. This article traces developments in the use of municipal bonds in South Africa and India. Subnational governments can use municipal bonds and other borrowing arrangements to finance essential local infrastructure. Particular importance has been given to the documentation of novel ways of tapping private sector resources, such as strategic partnerships and local development funds.īecause of the enduring success of the US municipal bond market, attempts have been made over the past two decades to establish municipal bond markets in developing countries. The paper documents the emergence of several important new trends: the broadening of locally generated revenue sources the strengthening of local financial management, the growing reliance on partnerships to finance capital investments, and enhancements to promote access to long-term credit for municipalities. Although the focus is on finance, selected initiatives tend to: promote democratic local governance foster partnerships involving communities and stakeholders in urban development initiatives and strengthen the capabilities and resources of local governments as the pivotal partners in the development process. The paper highlights creative initiatives in emerging, transitional and advanced economies. Using case studies to reflect the wide differences in the degree of fiscal decentralization and financial autonomy that exist among countries in any particular region, the paper focuses on the challenges faced, local financial management and performance, partnerships to address pressing urban issues, and emerging trends in the financing of capital investments. Download 2,800+ Royalty Free Margarita Drawing Vector Images. The main emphasis is on developing countries, where the challenges are the greatest and the resource constraints most acute. Margarita Drawing Vector Images (over 2,800) The best selection of Royalty Free Margarita Drawing Vector Art, Graphics and Stock Illustrations. This paper addresses the wide range of problems that municipal authorities face in financing urban development as they respond to the challenges of major shifts in their economic base resulting from falling trade barriers and a globalizing economy.
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