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MUNICIPALITIES AND FINANCE

MUNICIPALITIES AND FINANCE

A Sourcebook for Capacity Building

Ian Blore
Nick Devas
Richard Slater

London New York

First published by Earthscan in the UK and USA in 2004

Copyright Ian Blore, Nick Devas and Richard Slater, 2004

All rights reserved

ISBN: 1-84407-140-5

Page design by Brightmark, Pretoria
Typesetting by MapSet Ltd, Gateshead, UK
Cover by Danny Gillespie; original design by Dierdr Bartie
Cover photographs by Nick Devas

DISCLAIMER
This sourcebook was funded by the Knowledge and Research in Engineering Sections (EngKaR) of the UK Department for International Development (DFID). The facts presented and the views expressed are those of the authors and do not necessarily represent the policies of DFID

For a full list of publications please contact:

Earthscan
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
711 Third Avenue, New York, NY 10017
Earthscan is an imprint of the Taylor & Francis Group, an informa business

Earthscan publishes in association with WWF-UK and the International Institute for Environment and Development

A catalogue record for this book is available from the British Library

Library of Congress Cataloging-in-Publication Data

Blore, Ian.

Municipalities and finance : a sourcebook for capacity building / Ian Blore, Nick Devas, Richard Slater.

p. cm.

Includes bibliographical references (p. ) and index.

ISBN 1-84407-140-5 (pbk.)

1. Municipal financeDeveloping countries. I. Devas, Nick. II. Slater, R. P. III. Title.

HJ9695.B57 2004

352.4216dc22 2004013168

Acknowledgements

The research behind this sourcebook was undertaken during 2002 and 2003 by an international team. The country case studies were carried out by research partners in the countries concerned:

• Celina Souza (Centre for Human Resources, Federal University of Bahia, Brazil);
• P K Mohanty (formerly Municipal Commissioner of Hyderabad and now Executive Director, Centre for Good Governance, Hyderabad, India);
• Ravikant Joshi (GHK International, India);
• Peter Lewa (United States International University, Nairobi, Kenya); and
• Helen Mashaba Etoori (AclaimAfrica Consultants, Kampala, Uganda).

We would like to express our appreciation to the country researchers for their diligence in carrying out the fieldwork. We, together with them, would like to thank the many municipal officials and local informants who provided the stories for the research.

We would also like to thank colleagues in the International Development Department (IDD) at the University of Birmingham, notably Richard Batley for his assistance with the research, and Ken Davey and Simon Delay for their valuable comments on the drafts. Thanks also to Pauline Thorington-Jones who helped with the diagrams and Louise Blore who assisted with the initial editing.

Finally, we gratefully acknowledge the support of the Infrastructure and Urban Development Department at the UK Department for International Development (DFID) for the funding that made possible this research and the publication of this sourcebook.

Contents

List of Figures

List of Boxes

About the Authors

Ian Blore was until 2003 a Senior Lecturer in the International Development Department at the University of Birmingham and is now an independent consultant. Email: .

Nick Devas is Director of the International Development Department at the University of Birmingham. Email: .

Richard Slater is a Senior Governance Consultant with GHK International, London. Email: .

Acronyms and Abbreviations

ADB	Asian Development Bank
APUSP	Andra Pradesh Urban Services for the Poor project (India)
AT	accounting technicians (Sri Lanka)
BOO	buildownoperate
BOP	Budget Outreach Programme (Uganda)
BOT	buildoperatetransfer
CBO	community-based organisation
CIP	Capital Investment Plan (Brazil)
CIPFA	Chartered Institute of Public Finance and Accountancy, London
CLR	collection ratio
CMC	Colombo Municipal Council (Sri Lanka)
CoM	Corporation of Madurai
CRISIL	Credit Rating Information Services of India Ltd
CVR	coverage ratio
DFID	Department for International Development (UK government)
DSP	Devolution Support Programme (Pakistan)
ECG	Entebbe Civic Group (Uganda)
FIRE	Financial Institutions Reform and Expansion (India)
GAAP	Generally Accepted Accounting Principles
GDP	gross domestic product
GTZ	Gesellschaft fur Technische Zusammenarbeit (Germany)
HDFC	Housing Development Finance Corporation
HMC	Hyderabad Municipal Corporation (India)
IAAO	International Association of Assessing Officers
IAS	Indian Administrative Service
ICAI	Institute of Chartered Accountants of India
ICICI	Industrial Credit and Investment Corporation of India
ICRA	Indian Credit Rating Agency
IDD	International Development Department, University of Birmingham (UK)
IFMS	Integrated Financial Management System (Kenya)
IL&FS	Infrastructure Leasing and Financial Services Limited
ILGUS	Institute for Local Government and Urban Studies (India)
IMF	International Monetary Fund
IPTI	International Property Tax Institute
IRRV	Institute of Revenues, Rating and Valuation
IS	Service Tax (Brazil)
IT	information technology
IULA	International Union of Local Authorities
KCC	Kampala City Council (Uganda)
KLGRP	Kenya Local Government Reform Programme
km	kilometre
km2	square kilometre
LASDAP

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