Harmonizing Objectives and Outcomes at the National and Sub-National Levels through Citizen Engagement and Capacity Building

This paper is divided into nine sections. The first section discusses the context within which intergovernmental transfers occurs. The second section discusses the framework of the paper that tries to look at the bigger picture suggesting that the system of intergovernmental transfers occurs within the policy framework of decentralization in general, and fiscal decentralization in particular. Additionally, the principles of good governance – accountability, predictability, transparency and participation – impact upon the implementation of intergovernmental transfers. For instance, the predictability of transfers to sub-national levels of government enables rational and realistic planning. The third section of the paper discusses the rationale, objectives and outcomes of intergovernmental transfers. It suggests that, at the end of the day, outcomes – operationalized in terms of the delivery of appropriate basic services – have to be “harmonized” with the objectives of the transfers, which are essentially, to provide adequate financial resources to fund the functions that are delivered at sub-national levels. Parts six and seven suggest that both citizen engagement and capacity building may be important components in the design of intergovernmental transfers and contribute to the harmonization of objectives and outcomes. More specifically, these sections point out the objectives of the transfers and the general outcomes. The paper also includes some examples of some countries that suggest that citizen participation and capacity building may contribute to the general objective of harmonizing objectives and outcomes.