Decentralisation is a growing phenomenon worldwide. However, the detail of its
implementation determines whether desired objectives are achieved or not. The thesis
extensively interrogates this concept from economic, philosophical and political
theoretical perspectives, with emphasis on the economic rationale. An international
perspective has also been utilised for informing the investigation. Reference is made,
in this regard, to both federal and unitary states of the developed and developing
world.
Botswana, a unitary and developing African country, has been found to be facing
more or less the same challenges that undermine the desired benefits of fiscal
decentralisation in all developing countries. However, political maturity (which is a
prerequisite for decentralisation reforms) - a predictably stable commodity in
Botswana -sets it apart from most other developing, if not all, African countries.
With regards to decentralisation, a number of considerations framed the analysis.
Firstly, the established consecutive approach to Botswana 's centralised economic
planning and management has been found to be counter-productive to the financial
decentralisation process. This has resulted in an over-regulated local public sector
that is not conducive for taking stock of local initiative and being innovative in local
affairs, mainly due to an ambiguous institutional framework. Secondly, an ad hoc
financial transfer mechanism, that is neither stable nor predictable, clearly
undermines integrated financial management and strategic fiscal planning at
municipal level. Thirdly, a one-size-fits-all approach to the assignment of expenditure
responsibilities to all municipalities, small and large, as well as urban and rural,
serves as another constraint. Finally, a lack of stable and buoyant sources of own
revenues, as well as inadequate capacity to utilise fully the already existing internal
revenues, has created grant economies that survive on a principle of beggar-thyneighbour
to actualise their mandates. This? in turn undermines their? significance
for the electorates at local level who turn to the national government even for minor
local issues that should be addressed within the areas of local jurisdiction.