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Performance based grants and inclusive local development in Bangladesh

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Frame of Image ment and performance based financing
• • • • • Local development a critical challenge in structural transformation of globalizing economies Local economies not able to attract investment and benefits of growth are bypassing many populations Imperative to find financing solutions that enhance equity without losing allocative efficiency New challenge is to tap expanding domestic capital, in an era of dwindling external assistance UNCDF works with local governments to improve their access to public resources and domestic capital for accelerating local development
Performance based grants for local governments in Bangladesh
• • • • Builds on fiscal decentralization and enhanced functional assignments to trigger local development Performance based grants to Village Union Councils nationwide; now being introduced for Sub-Districts Makes use of formula based allocations, weighted by relative performance, to distribute budgeted funds Grants primarily used for local development infrastructure – includes small roads, bridges, schools
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Around $100 million provided each year, to about 4,500 Village Union Councils, since 2012
Performance based grant framework
• • • Links access to and size of the release of grants with the performance in pre-determined areas Incentivizes local governments to improve in key performance areas and comply with standards Supplements the grant delivery with capacity development and M&E systems
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Triggers accountability (up/down), participation and citizens’


Full Text
Title Performance based grants and inclusive local development in Bangladesh
Similar Titles
Material Type Proceedings
Author(English)

Balakrishnan, Suresh

Publisher

[Kampala, Uganda]:United Nations Capital Development Fund

Date 2016-07
Event

Management for Development Results

Pages 10
Subject Country Bangladesh(Asia and Pacific)
South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < Economic Administration
Official Aid < Development Assistance
Holding United Nations Capital Development Fund