The Effect Of Fiscal Decentralisation On Local Economic Development: A Case Of Kwahu South Municipal Assembly.

Abstract

The concept of decentralisation and Local Economic Development has become a concern to most scholars since “top-down state-led” interventions have been ineffective when resolving economic development issues in various localities. The ineffectiveness of “top-down state-led” has necessitated the need for Local Economic Development (LED), which is a bottom-up approach to economic development. Despite the immense benefit of LED activities, it is still rife with some challenges, such as lack of funds and poor coordination among the various stakeholders and partners involved in LED. A qualitative research approach, a case study design and a sample of 36 made up of the staff of Kwahu South Municipality, assemblymen, community members and private sector business owners were adopted for this study. This study sought to determine how fiscal decentralisation contributes to Local Economic Development (LED), the extent to which community members and private sector organisations are involved in LED activities, and the constraints of these actors in LED initiatives. The findings of the study revealed that fiscal decentralisation has contributed to human resource development, infrastructural activities, and business start-ups. The study’s findings also revealed that community members and private businesses are involved in LED activities. However, there are some constraints associated with the involvement of these actors in LED activities. Notable among these constraints are operational issues, lack of transparency, and apathy. Therefore, this study recommends that there should be effective coordination among various stakeholders or actors involved in LED activities, effective revenue mobilisation, and encouraging more of Public-Private Partnerships to enhance LED activities.