Tamanna
Do³±czy³: 06 Mar 2024
Posty: 1
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 The role of municipal funds for sustainable urban developmen |
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Cities in Latin America and the Caribbean (LAC) play a key role in providing services to their inhabitants . They are the administrative level closest to the needs of citizens, responsible for providing crucial services such as the supply of electricity, water, transportation, waste management and public infrastructure. In some countries in the region they also manage education, health and security. In order to provide all municipal services, cities need access to funding sources . As we analyzed in the first article in this series on subnational financing, municipalities obtain it in many ways. The most traditional are local, regional or national sources (such as taxes, fees or transfers). They can also access loans or grants, and obtain benefits through land readjustment and joint ventures , or public-private partnerships, as in the cases of Washington DC and Bilbao . There is also another instrument, increasingly common: municipal funds.
What are municipal funds? How do they work? In today's article, we will answer these questions, since at the IDB we consider that they can be a key tool to finance the sustainable development of our region. What are municipal development funds? Municipal development funds are nationally established financial Phone Number List intermediaries that channel resources in the form of loans or donations and, in some cases, blended financing. They can take the form of banks, trusts and other entities. These funds have been widely used in OECD countries and other emerging economies. They have proven instrumental in promoting fiscal discipline and building capacity for project development, repayment and credit history in local governments. The role of municipalities in sustainable development Before delving into the details of municipal funds, it is essential to highlight the role of local governments in public investment and sustainable development.
This importance is reflected in several documents, such as the UN Secretary General's Synthesis Report on the Sustainable Development Goals (SDGs), which notes that “ the majority of investments to achieve the sustainable development goals will be carried out at the subnational level and will be led by local authorities . ” In this same sense, a High Level Panel , in relation to the Post-2015 agenda, maintains that the fight for sustainable development will be decided in the cities . Similarly, the Addis Ababa Action Agenda on Financing for Development emphasizes the subnational role in financing development and commits to increasing international cooperation in order to support subnational governments in achieving this purpose. There are at least three factors that explain the importance of local governments in sustainable development: Deficits in infrastructure and services : Many countries in the region face deficits in infrastructure and services.
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