Democracy and financial transparency of local governments in Sub-Saharan Africa

2020 ◽  
Vol 28 (4) ◽  
pp. 681-699
Author(s):  
Redeemer Krah ◽  
Gerard Mertens
Keyword(s):  
Public Sector ◽  
Local Government ◽  
Local Governments ◽  
Local Governance ◽  
Financial Information ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Public Sector Accounting ◽  
Financial Transparency ◽  
Sub Saharan

Purpose The study aims at examining the level of financial transparency of local governments in a sub-Saharan African country and how financial transparency is affected by democracy in the sub-region. Design/methodology/approach The study applied a panel regression model to data collected from public accounts of 43 local authorities in Ghana from 1995 to 2014. Financial transparency was measured using a transparency index developed based on the Transparency Index of Transparency International and the information disclosure requirements of public sector entities under the International Public Sector Accounting Standards. Findings The study finds the low level of financial transparency among the local governments in Ghana, creating information asymmetry within the agency framework of governance. Further, evidence from the study suggests a strong positive relationship between democracy and financial transparency in the local government. Research limitations/implications Deepening democracy is necessary for promoting the culture of financial transparency in local governance in sub-Saharan Africa, perhaps in entire Africa. Practical implications There is a need for the local governments and governments, in general, to deepen democracy to ensure proactive disclosure of the financial information to the citizens to improve participation trust and eventual reduction in corruption. Effective implementation of the Right to Information Act would also help promote financial and other forms of transparency in the sub-region. Originality/value The study contributes to the public sector accounting literature by linking democracy to financial transparency in the local government. Hitherto, studies concentrate on how entity level variables impact on the level of financial information flow in the local government without considering the broader governance infrastructure within which local governments operate.

Inter-governmental relations and procurement non-compliance in African local government systems

2019 ◽  
Vol 19 (4) ◽  
pp. 277-294
Author(s):  
Parestico Pastory
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Central Government ◽  
Government Procurement ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Documentary Analysis ◽  
Sub Saharan ◽  
The Third World ◽  
Depth Interviews

Purpose The purpose of this study is to examine the implications of inter-governmental relations on procurement compliance in local government. Design/methodology/approach A total of 68 in-depth interviews with local government officials and councillors in four different local government authorities, members of parliament in the local authorities accounts committee and a committee clerk were carried out in addition to documentary review. Findings Evidences from in-depth interviews and documentary analysis point to central government as one of key reasons for procurement non-compliance. The nature of inter-governmental relations enables the central government to issue encroaching directives on local government procurement plans or take handicapping actions on the financial ability of the local governments to execute procurement plans. Practical implications The study adds inter-governmental relations on strategies for improving procurement compliance in African local government systems. Originality/value Despite increasing research on procurement compliance, the complexity of regulatory non-compliance in local government procurement has not been adequately analysed. The current study uses an inter-governmental relations perspective to contribute knowledge on procurement compliance in local government systems of the Third World, sub-Saharan Africa in particular.

The use of budgetary and financial information by politicians in parliament: a case study

2019 ◽  
Vol 31 (4) ◽  
pp. 539-557 ◽  
Author(s):  
Susana Jorge ◽  
Maria Antónia Jorge de Jesus ◽  
Sónia P. Nogueira
Keyword(s):  
Public Sector ◽  
Information Needs ◽  
Accounting Information ◽  
Financial Information ◽  
Content Type ◽  
Members Of Parliament ◽  
Information Intermediaries ◽  
Public Sector Accounting

Purpose The purpose of this paper is to research the use of accounting information by politicians. Based on the Portuguese Parliament setting, it seeks to understand how useful politicians consider this information to be, what type of budgetary and financial information they use, and for what purposes. Finally, the research also seeks to find out whether politicians resort to expert intermediaries or advisors help them in the use of this information. Design/methodology/approach Following a qualitative and interpretative methodology, the study draws upon interviews with Members of Parliament in Portugal (and their technical advisors (TAs)) from all political parties, in particular the members of the Budget, Finance and Administrative Modernization Committee (COFMA) of the Parliament. Findings Research shows that, due to the general lack of knowledge and the complexity of the accounting information, politicians in the Parliament do not use it frequently, only occasionally. To be better or worse informed for the debates and other activities depends on each Member of Parliament’s personal willingness to prepare oneself, notwithstanding some aggregated and previously analyzed information made available by official technical support units. Parliamentarians may also resort to TAs, who prepare the information at their request. Both intermediaries and TAs are deemed important to support parliamentarians’ understanding of more technical budgetary and financial issues. Practical implications This paper shows that politicians acknowledge there is room for improving the role of information intermediaries and advisors, who would support them to better understand and use accounting information. Parliamentary groups incharge of hiring advisors, as well as accounting professionals, in Portugal and in other countries, must be aware of the very useful role accountants play in this process. Social implications While allowing to understand whether and how politicians use accounting information, this research contributes to the process of public sector accounting reforms in Portugal, and at an international level, inasmuch as public sector accounting and reporting standards should better address these users’ information needs. Assuming that these reforms would foster more accurate, transparent and useful information for accountability and decision making, it is essential that politicians acknowledge and become real users of accounting information, in order to accomplish those objectives. Originality/value This study contributes to the general knowledge of how politicians use accounting information. Academic studies so far have not gathered enough evidence about the type of accounting information that is actually important for politicians. This paper highlights that use of such information by politicians depends on individual skills and their willingness to receive the appropriate advice.

South-to-South and Donor-driven Diffusion in Sub-Saharan Africa

2021 ◽  
pp. 158-180
Author(s):  
Brian Wampler ◽  
Stephanie McNulty ◽  
Michael Touchton
Keyword(s):  
Rural Areas ◽  
Local Governments ◽  
Local Governance ◽  
Well Being ◽  
Sub Saharan Africa ◽  
Small Scale ◽  
Development Projects ◽  
Marginalized Communities ◽  
New Development ◽  
Sub Saharan

Governments in sub-Saharan Africa began to adopt PB in the early 2000s. The World Bank, USAID, DFID, and other international organization led the push to expand PB. By 2019, the region included more than nine hundred programs. PB’s diffusion across sub-Saharan Africa has led to its transformation in scale, rules, and impact. Most PB programs in sub-Saharan Africa focus on building accountability and allowing participants to select small-scale development projects. These programs are located both in major cities (Maputo, Nairobi) as well as in poor, rural areas across the region. These programs are intended to improve local governance, but the involvement of international donors means that local governments must address their concerns as well as those of participants. The programs also emphasize placing new development projects in poor, marginalized communities, thus retaining potential for improving well-being. This chapter documents these trends by focusing on PB in Kenya, Madagascar, Mozambique, Senegal, South Africa, and Uganda.

Efforts to tackle Africa illicit flows will fall short

2015 ◽  
Keyword(s):  
Investor Sentiment ◽  
Sub Saharan Africa ◽  
Financial Systems ◽  
Financial Flows ◽  
Content Type ◽  
Trading Partners ◽  
Illicit Flows ◽  
Illicit Financial Flows ◽  
Financial Transparency ◽  
Sub Saharan

Subject Illicit flows from sub-Saharan Africa. Significance Illicit financial flows (IFFs) from sub-Saharan Africa (SSA) are estimated to be worth up to 50 billion annually, according to a recent UN report. The transfer of illicit flows through international financial systems has created opportunities for governments in European destination countries to recover plundered funds and prosecute those involved. These efforts set new legal precedents, but the rulings will be difficult to implement where governments are worried about the effect on investor sentiment. Impacts New and important African trading partners, from China to Dubai, will create new networks of illicit financial flows. Questions of financial transparency will arise, though irrespective of where the 'destination' negotiating partner is from. China's extra-territorial anti-bribery legislation shows efforts to comply with 'responsible' business, but so far lacks implementation.

Tightened controls will avert Mexican state debt rise

2015 ◽  
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Government Debt ◽  
Oil Price ◽  
National Debt ◽  
Content Type ◽  
Number Of Factors ◽  
Mexican State ◽  
Debt Issuance ◽  
Financial Transparency

Subject Mexican sub-national debt. Significance Mexico's states have long enjoyed considerable freedom to take on debt. However, legislation to tighten the issuing of debt by states and municipalities while increasing their financial transparency was submitted by President Enrique Pena Nieto on August 17. The move was triggered by a number of factors, including the plunge of the global oil price, political changeovers in local governments and excessive debt issuance by some authorities. Impacts Although unlikely, default by Nuevo Leon would shake markets, even affecting the federal government's creditworthiness. The new legislation will ease tensions between outgoing and incoming governments, with twelve states electing new governors in 2016. The level of local government debt will remain low, comparing favourably with other countries in the Americas.

The sticky cost phenomenon at the local government level: empirical evidence from Greece

2017 ◽  
Vol 18 (4) ◽  
pp. 445-463 ◽  
Author(s):  
Sandra Cohen ◽  
Sotirios Karatzimas ◽  
Vassilios-Christos Naoum
Keyword(s):  
Public Sector ◽  
Local Government ◽  
Empirical Evidence ◽  
Service Provision ◽  
Local Governments ◽  
Content Type ◽  
The Public ◽  
Cost Behaviour ◽  
Asymmetric Cost ◽  
Cost Stickiness

Purpose The purpose of this paper is to explore the asymmetric cost behaviour in Greek local governments. More precisely, it investigates whether municipality costs show stickiness or anti-stickiness behaviour after increases or decreases in the stream of their revenues. Design/methodology/approach The Anderson et al.’s (2003) approach is adapted to the public sector environment by using types of expenses and revenues typical to the local government setting. The data sample consists of 1,852 observations of Greek municipalities for the period 2002-2008. Findings The empirical evidence suggests that local government managers adjust resources related to administrative services faster when revenues decrease than when they rise (anti-stickiness cost behaviour). On the contrary, they adjust costs of service provision which are associated with core activities asymmetrically; more quickly for upward than for downward activity changes (cost stickiness behaviour). Research limitations/implications While prior studies examine the sticky cost phenomenon in the private sector, this study explores this phenomenon in the public sector through a data sample of municipalities. Local governments constitute an appealing and unique setting for the examination of asymmetric cost behaviour due to the existence of a strong political influence, which appears to affect rational economic decision making, and their non-profit character, which prevents them from acting in a business-like manner. Practical implications Understanding how cost stickiness works inside local understanding how cost stickiness works inside local governments, could lead to an understanding of its implications in periods of cutback measures. Decreases in municipalities’ subsidies and grants as a result of cutbacks in central government expenditures should not be expected to automatically result in symmetric savings in expenditures as corresponding increases in expenditures when revenues used to grow. At the same time, it might be difficult to achieve balanced budgets in municipalities when there is a considerable decrease in revenues, without having to make considerable adjustments to the input values, the output and the mix of services offered by them. Originality/value This study contributes to the accounting literature by expanding the understanding of how deliberate decisions influence the asymmetric cost behaviour in local governments, to different cost categories (administrative expenses and cost of service provision) and different revenue categories (grants, tax revenues and revenues from sales of goods and services).

PENGARUH KARAKTERISTIK PEMDA DAN TEMUAN AUDIT BPK TERHADAP KINERJA PEMDA KABUPATEN DI PULAU SUMBA

2016 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Samuel Christian Ara ◽  
Titiek Herwanti ◽  
Endar Pituringsih
Keyword(s):  
Public Sector ◽  
Local Government ◽  
Financial Management ◽  
Local Governments ◽  
Central Government ◽  
Information Policy ◽  
Capital Expenditures ◽  
Government Performance ◽  
Public Sector Accounting

<p><em>This research is aimed at examining and analyzing the effect of</em><em> the characteristics of the local government and BPK audit findings on the performance of local governments on the island of Sumba. Local government performance is measured by a score results of Evaluasi Kinerja Penyelenggaraan Pemerintahan Daerah (EKPPD).This research was classified as associative research. The samples used were all local governments on the island of Sumba, Sumba Timur, Sumba Tengah, Sumba Barat and Sumba Barat Daya during the period of 2009-2014. The Analysis employed multiple linear regresion.The research showed that the variable characteristics of the local government who described the wealth level of local government, the level of dependence on central government, capital expenditures and audit findings on the performance of local governments on the island of Sumba.The implications of this research theoretically contribute in the field of public sector accounting, particularly at the local government in governance. Practically provide information and advice to the local government in terms of financial management. In this research provide information policy as a basis for consideration in making policy as an effort to improve the performance of local governments on the island of Sumba.</em></p>

scholarly journals “Does your walk match your talk?” Analyzing IPSASs diffusion in developing and developed countries

2019 ◽  
Vol 33 (2/3) ◽  
pp. 117-139 ◽  
Author(s):  
Tobias Polzer ◽  
Levi Gårseth-Nesbakk ◽  
Pawan Adhikari
Keyword(s):  
Public Sector ◽  
Institutional Theory ◽  
Local Governments ◽  
Central Government ◽  
Diffusion Theory ◽  
Accounting Standards ◽  
Developed Countries ◽  
Analytical Framework ◽  
Content Type ◽  
Public Sector Accounting

Purpose The purpose of this paper is to provide a global overview of the adoption status of International Public Sector Accounting Standards (IPSASs) in the different contexts of developed and developing countries on central government level, particularly delineating key reform issues and attempts to overcome these. Design/methodology/approach Drawing on an analytical framework that combines neo-institutional theory with diffusion theory, prior research and official documents were re-analysed. Findings There are substantial differences regarding whether countries acknowledge having experienced large implementation challenges and the extent to which the reform benefits have been achieved. The study sheds light on the (institutional) underpinnings of these differences. Research limitations/implications First, the analysis could be extended to regional and local governments, as well as social funds. Both qualitative and quantitative strategies are suggested. Second, the implementation of the conceptual framework deserves further attention. Third, further research should more thoroughly scrutinise cost-benefit analyses used for justifying the (non)implementation of IPSASs, and in particular the assumptions that are being made in such analyses. Practical implications The paper informs policymakers and standard setters by delineating the areas and issues complicating the widespread adoption of IPSASs across countries, including pointing out directions to overcome these. Social implications Substantial amounts of public money are invested internationally to converge accounting standards and translate them into native languages. A close(r) monitoring is needed to ensure that these efforts obtain sufficient value for money. Originality/value This study is original as it applies an analytical framework that combines neo-institutional theory and diffusion theory to examine public sector accounting convergence issues internationally. Such an approach explicitly puts a focus on decoupling between reform “talk” (decision) and “walk” (implementation) and helps to analyse the reasons for this decoupling.

scholarly journals Institutionalising federalism in Nepal: operationalising obstacles, procrastinated progress

2020 ◽  
Vol 23 (2) ◽  
pp. 125-139
Author(s):  
Keshav Kumar Acharya ◽  
Habib Zafarullah
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Public Management ◽  
Local Governance ◽  
Group Discussions ◽  
Content Type ◽  
Government Grants ◽  
The People ◽  
Government Legislation ◽  
And Control

PurposeThe purpose of this paper is to explore how local government bodies in Nepal are empowered to play their constitutional roles and engage in activities to deliver public services at the doorsteps of the people effectively. The focus is on the institutionalisation of federalism, its implications for local governance, and capacity development of local authorities.Design/methodology/approachIdeas of decentralisation, governance and public management have been used to interpret findings based on qualitative research methods by key informant interviews, focus group discussions and personal observations conducted in five selected municipalities in Nepal.FindingsThe process of operationalising the power of local government bodies is more conventional and hierarchic. At the same time, the formulation and implementation of inclusive plans and budgeting are confined with certain formalities that do not necessarily allow citizens the space for voices. Federal government grants constrain fiscal jurisdiction and control over resource mobilisation. The mere preparation and administration of local government legislation and relevant by-laws have weakened the capacity of local government bodies.Originality/valueFrom interpretation of first-hand data, this paper has identified the pitfalls of the federalisation process, the constraints deter the devolution of power to local bodies as well as the transformation of local governments into autonomous institutions in Nepal.

An empirical analysis of fertiliser use intensity in rural Sub-Saharan Africa

2016 ◽  
Vol 43 (12) ◽  
pp. 1400-1419 ◽  
Author(s):  
Abubakar Hamid Danlami ◽  
Rabiul Islam ◽  
Shri Dewi Applanaidu ◽  
Ahmad Muhammad Tsauni
Keyword(s):  
Local Government ◽  
Negative Impact ◽  
Sampling Technique ◽  
Local Government Area ◽  
Sub Saharan Africa ◽  
Content Type ◽  
Sub Saharan ◽  
Fertiliser Application ◽  
Fertiliser Use ◽  
And Training

Purpose It is generally agreed that shortage of food, which is one of the main problems bedevilling Sub-Saharan African region, can be eliminated via the adoption of modern agricultural production technology, one of which is chemical fertiliser. The purpose of this paper is to assess the factors that can be used to improve the intensity of fertiliser use in rural Sub-Saharan African countries, taking Tofa, a local government area in Kano State, Nigeria, as the case study. Design/methodology/approach The study adopted a two-stage sampling technique. In the first stage, four districts were chosen using a simple random sampling technique from the list of the 15 districts in the local government area, namely, Tofa, Langel, Lambu and Doka. In the second stage, 25 farmer households were systematically selected from each of the selected communities. Moreover, Tobit Regression model was used to examine and analyse the influence of some socio-economic factors on fertiliser use intensity. Findings To improve the rate of fertiliser use intensity, farmers need to be exposed to skills and training on some off-farm jobs to raise the farmers’ income to enable them to afford more fertiliser. The study finds that income, contact with extension agent, age of the farmer and method of fertiliser application have positive significant impacts on the intensity of fertiliser use. On the other hand, price of fertiliser was found to have negative impact on the intensity of using fertiliser in the study area. Furthermore, based on the data obtained from the selected samples, the average rate of fertiliser application in Tofa local government area during the crop season of 2011/2012 was 25 kg per hectare. Originality/value Policies that will strengthen the farmers’ contact with extension agents throughout the farming periods should be adopted. Also, farmers need to be exposed with skills and training on some off farm jobs to raise the farmers’ income to enable them afford more fertiliser.

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