Inducing Local Government Performance in Ghana: The Case of the District Development Facility

Decentralisation has become an essential tool of democracy and development. Decentralisation has been widely promoted all over the world as a means of promoting governance, participation and local development. Undoubtedly, decentralisation is a positive action. However, decentralised local governments are yet to effectively deliver the much-expected results. In Ghana, concerns have been raised about the poor performance of District Assemblies across the country. These concerns have led to the setting up of the District Development Facility by the Government of Ghana and her development partners to provide financial incentives as a means of enhancing the performance of the District Assemblies in the country. This paper explores the use of financial resources to induce the performance of District Assemblies in Ghana. Using three basic methods of data collection: in-depth interviews, review of relevant documents and participation in a district budget forum, the paper explores the role of the District Development Facility in improving the performance of District Assemblies in the country. The paper argues that although the transfer of financial resources to the District Assemblies is necessary, it is not a sufficient condition in addressing their numerous structural challenges and improving performance. The paper recommends a comprehensive approach that goes beyond financial inducement or incentives to improve the performance of District Assemblies in Ghana.