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Rationale of LCSP
Objectives of the Programme
Direct benefits to Cities
Capacity Building
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Current Intergovernmental fiscal transfer
system is not sufficiently flexible to support
effective strategic planning
Strategic planning framework is often
institutionally ‘dislocated ’ and forced to
compete for sources of funding
Perpetuates sector-specific decisions which
has hampered effective integrated planning
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Support and strengthen the service delivery
and management capacity and systems of
South African cities
Key subsidiary objectives would be to:
– enhance the strategic management capacity of
cities on core aspects of public financial
management and service delivery;
– Realign financing of cities, primarily through the
repositioning of fiscal transfers;
– strengthen mechanisms of citizen interface and
oversight over municipalities.
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An opportunity for the Government of South Africa
and its cities to:
◦ Leverage World Bank’s experience in the design
and actual implementation of intergovernmental
fiscal transfers, in urban transport, job creation,
human settlements, green cities and local
governance
◦ National Treasury innovating already – USDG
which allows cities to use the fiscal instrument to
drive strategic planning
◦ LCSP will strengthen this approach through
capacity support primarily directed at cities as
drivers of integrated planning
– Leverage the World Bank as a platform, benefitting
directly from other countries’ experience in
decentralization and urbanization (Brazil, China,
India,….)
– Use the World Bank’s convening power to work with
other partners of development under an unique
framework
– Deepen SA’s voice on issues of local governance
and within the context of the emerging role of MICs
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Enhanced Fiscal Transfer Mechanisms – predictable,
transparent, flexible and result oriented, holding cities
accountable
City to City Collaboration: LSCP will be a platform of
exchange allowing cross-learning on specific topics. For
example, (management of assets, integrated urban
development, planning, budgeting..)
Capacity building provided to the cities will focus on asset
management, land management, integrated planning and
budgeting, financial management, procurement, green
development and good governance.
Capacity building will consist of a number of activities,
including direct technical support to the Cities, the
promotion of cross-learning among cities on specific
themes, as well as direct training
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By building on opportunities for learning:
– Green cities (energy efficiency, low carbon city
initiative) – link to COP 17
– Human settlements/Informal Settlement Upgrading
(Leveraging worldwide experiences, from Brazil,
India)
– Integrated Public Transport (city-to-city peer
learning program drawing lessons learned from
China)
– Strengthening good Governance – how to fight
corruption at the local level – US cities/ New York