Why Local Government Finance is Essential to the COVID-19 Response

04/08/20 • 116 min

Local governments have been on the frontlines when it comes to the COVID-19 response, in large part because of their competencies--citizen engagement, management of public space and service delivery. But for local governments in the world's least developed countries, their ability to execute an effective response is undermined by a lack of funding, considering many local governments lack the authority to tax or access capital markets. What measures can local governments deploy to address these finance challenges, which can be deployed in days or weeks instead of months?

We spoke with two thought leaders and practice leaders--David Jackson and Tehmina Akhtar, Director and Deputy Director of UNCDF's Local Development Finance Practice--to get their insights and recommendations for how local governments can address these finance challenges to support and strengthen their COVID-19 responses. These recommendations are also included in a publication UNCDF has released this wee k.

This is a special co-podcast of Capital Musings and Capital Locast.

This is a special co-podcast of Capital Musings and Capital Locast.

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Honourable Lamin B. Dibba is the Minister of Environment, Climate change & Natural Resources for the Gambia since January 2017. The Minister oversees the line Departments of Forestry, Parks & Wildlife Management and the National Environment Agency.

Hon. Dibba was previously the National Advisor to the SOS Children’s Village for the Gambia and the Executive Director of the Gambia Women’s Finance Association (GAWFA). He was also former Executive Director of NGO Affairs Agency under the Ministry of Local Government & Regional Administration. Gambia has recognized that fiscal transfers from central to local government can significantly accelerate Gambia’s adaptation to climate change and boost the resilience of its local economies. Gambia also recognizes the relevance of local government finance for transboundary river basin management for addressing the challenge of rapid urbanization. Gambia has joined the Local Climate Adaptive Living Facility, a 15-country initiative, managed by its members, that channels climate finance to local governments through fiscal transfer mechanisms. Minister Dibba explains how local governments are driving Gambia’s resilience.

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Capital Locast - Episode 8

Brock Carlton – Chief Executive Officer of the Federation of Canadian Municipalities. Brock believes that “Cities and towns build nations; they just need the power.” Under Brock’s leadership the FCM has become a major factor in Canada’s development path - from strategic partnerships with central government to establishing a role for Canadian municipalities in overseas development. Brock joins us to share the story of how the FCM has evolved to play such a major role, how it unites the interests of large cities such as Vancouver, Toronto and Montreal with those small rural towns and how it has contributed to the unity of a country as diverse as Canada. Brock also details how Canada is pioneering the role of municipalities as international development actors.