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Stakeholder Analysis of Roles and Responsibilities in the Implementation of Fiscal Decentralization Policy Reform in Ghana

Fiscal decentralization is not a new phenomenon, however, as noted by the World Bank, (2000) its implementation in developing economies became a development trend during  the  1990s.  Fiscal  decentralization  is  the  shift  of  expenditure  functions  with accompanying  revenue  to  local  government  entities  for  improved  service  delivery.  In Ghana, since 1992, various studies have shown that some progress has been made in its implementation, the rate of progress however, has been slow.   

This  study  was  carried  out  using  stakeholder  analysis  tools  to  understand stakeholder roles and responsibilities, power influence relations, incentives and political dynamics in the implementation of Ghana’s fiscal decentralization policy and to suggest some  recommendations  to support  for  the current efforts  at  implementing  some policy reforms.
The study revealed that factors which have contributed to slow implementation of fiscal  decentralization  in  Ghana  include;  incomplete  transfer  of  functions;    low    IGF collection by MMDAs iii), limited borrowings rights of MMDAs; excessive deductions from DACF;   poor coordination of many multiple stakeholders with divergent interest, power  and  influence;  and  inadequate  understanding  of  stakeholder  of  the  policy  on improved service delivery.  

The  study  again  suggests  that  the  setting  up  of  Inter-Ministerial  Coordinating Committee  (IMCC)  chaired  by  H.  E.  the  President,  has  accelerated  the  process  since 2011.  Key  among  recent  achievements  includes  transfer  of  30,000  civil  servants, composite budget  implementation  and  revision  of  the  local  government  Act  1993,  Act 462, among others.  
To accelerate the current effort at implementation, there is the need: i. to design a well-structured  coordination  system  to  manage  the  multiple  stakeholders’  divergent interest  which  has  plagued  the  process  over  the  years.  This  can  be  achieved  with  the formation of coordination committee with representation from all interested parties ii) to conduct  effective  sensitization  of  central  level  stakeholders  as  well  as  training  of MMDAs  and  other  stakeholders  on  their  roles  and  responsibilities;  iii)  to  strengthen IMCC  facilitate  the  coordination  to  reduce  conflicts, protection of  interest etc;  and  iv)  reduce and ultimately eliminate the deductions from the DACF and set up line item in the national budget to implements MPs projects and national priorities

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