Theoretical Reflections on Ghana’s Decentralisation: Increasing Discretional Funding Through the District Development Facility

Abstract

One of the most convincing arguments given for decentralisation is that it makes governments more accountable and responsive to the governed. Apart from creating opportunities for greater participation of local people, it is also said to enhance the management of local resources. Successful decentralisation therefore is closely related to how well finances are mobilised and made available to support decentralised functions. Ghana’s decentralisation received a boost with the introduction of the District Development Facility to support Metropolitan, Municipal and District Assemblies. Using the Functional Organisation Assessment Tool, financing is made available to support specific needs of the Assemblies. This paper reflects on the prospects of this facility to improve the financial position of the Assemblies, and poses questions as to whether this is a sustainable approach to resolving the financial need at the local level.