Channeling Resources to Local Development Concerns: Issues and Options

Abstract

The article gives overview of the benefits and problems that go along with the process of devolution. While the local government units (LGUs) appear to be more competent in providing basic services to people, realities like spillover effects and inequalities among LGUs warrant the intervention of the national government (NG). Certain issues arise from such intervention, the most notable of which are financing arrangements for local projects and differences in development priorities between LGUs and NG. This paper (as well as the other papers in this issue) addresses these concerns by proposing some policy guidelines and options for a more efficient transfer of resources to LGUs.