The Impact Of Fiscal Decentralisation On Local Economic Development In Ghana: A Case Study Of Ketu South Municipal Assembly (KSMA)

ABSTRACT

The relationship between fiscal decentralisation and local economic development has been a subject of particular interest to most scholars of public administration and development economists. Improving public good and service delivery is one of the predominant challenges facing governments worldwide, especially how it impacts on the general economic development of the poor and the vulnerable in society. Fiscal decentralisation is largely accepted as a tool for poverty reduction and rural development leading to local economic development. However, fiscal decentralisation is not an end in itself but a means to an end. Local economic development on the other hand is the approach to development that allows local resources, natural, financial and or human resource to be harnessed in a way that delivers sustainable growth to improving the standard and quality of lives of the local people. This thesis examined the impact of fiscal decentralisation on local economic development in Ghana, evidence from the Ketu South Municipal Assembly (KSMA). The case study research design was used and the qualitative research method was adopted to collect and analyze data from twenty-five (25) respondents. Primary data was collected from respondents including the Fiscal Decentralisation Unit (FDU) of the Ministry of Finance (MoF). Data was analyzed using Miles and Huberman (1984) method of qualitative data analysis. The study identified that the current structure and practice of fiscal decentralisation in KSMA is slightly different from what the Local Government Act 462 advocates and the major factors impeding the effective fiscal decentralisation are inadequate reliable database on the revenue points within the assembly, logistics for IGF mobilization, challenges with human resources, and attitudinal problem on the part of local residents towards payment of taxes. The result further showed that all things being equal, an effective fiscal decentralisation would lead to an improved local economic development. This research therefore confirmed the consensus in the literature that fiscal decentralisation impacts local economic development. This impact could either be positive or negative depending on how it is influenced by structures such as effective community participation, availability of local resources, and local capacity to maximize these resources. It was recommended that government release the DACF is released on time to help KSMA to effectively improve the local economic development of the citizenry. This would enable the districts to as part of its development drive, focus on sustainable livelihood creating opportunities in the form of capacity building and jobs for the local residents rather than just focusing on the building of physical structures only. 

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APA

KWADJO, E (2021). The Impact Of Fiscal Decentralisation On Local Economic Development In Ghana: A Case Study Of Ketu South Municipal Assembly (KSMA). Afribary. Retrieved from https://afribary.com/works/the-impact-of-fiscal-decentralisation-on-local-economic-development-in-ghana-a-case-study-of-ketu-south-municipal-assembly-ksma

MLA 8th

KWADJO, EMMANUEL "The Impact Of Fiscal Decentralisation On Local Economic Development In Ghana: A Case Study Of Ketu South Municipal Assembly (KSMA)" Afribary. Afribary, 26 May. 2021, https://afribary.com/works/the-impact-of-fiscal-decentralisation-on-local-economic-development-in-ghana-a-case-study-of-ketu-south-municipal-assembly-ksma. Accessed 30 May. 2024.

MLA7

KWADJO, EMMANUEL . "The Impact Of Fiscal Decentralisation On Local Economic Development In Ghana: A Case Study Of Ketu South Municipal Assembly (KSMA)". Afribary, Afribary, 26 May. 2021. Web. 30 May. 2024. < https://afribary.com/works/the-impact-of-fiscal-decentralisation-on-local-economic-development-in-ghana-a-case-study-of-ketu-south-municipal-assembly-ksma >.

Chicago

KWADJO, EMMANUEL . "The Impact Of Fiscal Decentralisation On Local Economic Development In Ghana: A Case Study Of Ketu South Municipal Assembly (KSMA)" Afribary (2021). Accessed May 30, 2024. https://afribary.com/works/the-impact-of-fiscal-decentralisation-on-local-economic-development-in-ghana-a-case-study-of-ketu-south-municipal-assembly-ksma