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Responsibility with accountability: A FAIR governance framework for performance accountability of local governments

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  • Anwar Shah

    (Southwestern University of Finance and Economics (SWUFE) Chengdu, China; Brookings Institution Washington, DC; World Bank)

Abstract

This paper focuses on the role of local governments in bringing about fair, accountable, incoorruptible and responsive (FAIR) governance. Local governments around the world have done important innovations to earn the trust of their residents and their comparative performance is of great interest yet a comprehensive framework to provide such benchmarking is not available. This paper attempts to fill this void, by developing a general framework for performance accountability of local governments and by relating real world practices to aspects of this framework. The proposed rating framework requires several types of assessments: (a) their compliance with due process and law; (b) monitoring of fiscal health for sustainability; (c) monitoring of service delivery ; and (d) citizens’ satisfaction with local services. The approach yields key indicators useful for benchmarking performance that can be used in selfevaluation and improvement of performance. t From an analysis of practices in local government performance monitoring and evaluation, the paper concludes that ad hoc ad-on self standing monitoring and evaluation systems are more costly and less useful than built-in tools and mechanisms for government transparency, self–evaluation and citizen based accountability such as local government output budgeting and output based fiscal transfers to finance local services.

Suggested Citation

  • Anwar Shah, 2014. "Responsibility with accountability: A FAIR governance framework for performance accountability of local governments," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 32(2), pages 343-377.
  • Handle: RePEc:rfe:zbefri:v:32:y:2014:i:2:p:343-377
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    References listed on IDEAS

    as
    1. Ivanyna, Maksym & Shah, Anwar, 2014. "How close is your government to its people? Worldwide indicators on localization and decentralization," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 8, pages 1-61.
    2. Anwar Shah, 2006. "Local Governance in Developing Countries," World Bank Publications - Books, The World Bank Group, number 7192, December.
    3. Brian E. Dollery & Joseph Garcea & Edward C. LeSage Jr (ed.), 2008. "Local Government Reform," Books, Edward Elgar Publishing, number 12592.
    4. Anwar Shah, 2006. "Local Governance in Industrial Countries," World Bank Publications - Books, The World Bank Group, number 7108, December.
    5. Brian E. Dollery & Lorenzo Robotti (ed.), 2008. "The Theory and Practice of Local Government Reform," Books, Edward Elgar Publishing, number 12719.
    6. Anwar Shah, 2005. "Public Expenditure Analysis," World Bank Publications - Books, The World Bank Group, number 7436, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    local government; responsibility; accountability; theory; practice; performance;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • H79 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other

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