IMPROVING LOCAL-GOVERNMENT FINANCE IN A CHANGING ENVIRONMENT

This paper addresses key issues in local government finance reform in the context of decentralisation and more active engagement of the priv ate sector in urban service delivery and its financing. A basic premis e is that securing institutional arrangements for intergovernmental re lationships and the incentive structure governing the performance of l ocal government is essential in the design and implementation of polic y to improve focal finance. Within this framework, the paper discusses major subject areas in which changes are needed to promote viable dec entralisation and successful private-public partnerships. Copyright (C ) 1997 Elsevier Science Ltd.