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Financing metropolitan areas

In: Fiscal Decentralization and Local Finance in Developing Countries

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Abstract

There is ample evidence that productivity and incomes increase with city size and density, and that city growth and national economic growth are strongly linked. Unfortunately, the fiscal framework in most developing countries limits the extent to which cities can meet expenditure needs or capture the revenue opportunities that accompany urbanization. This chapter lays out options for a better governance and financing model for big cities in the developing world. It considers how local governance may be structured within metropolitan areas; when and how more local autonomy in making expenditure decisions is possible; and the taxes and charges that might best support a more fiscally self-sufficient local governance structure, supporting the analysis with a review of the practice in metropolitan finance in some low-income countries.

Suggested Citation

  • ., 2018. "Financing metropolitan areas," Chapters, in: Fiscal Decentralization and Local Finance in Developing Countries, chapter 8, pages 341-393, Edward Elgar Publishing.
  • Handle: RePEc:elg:eechap:17561_8
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    Cited by:

    1. Menno Schellekens & Taha Yasseri, 2021. "Credit Crunch: The Role of Household Lending Capacity in the Dutch Housing Boom and Bust 1995-2018," Papers 2101.00913, arXiv.org.

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    Economics and Finance;

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