UNIVERSITY FOR DEVELOPMENT STUDIES

FACULTY OF EDUCATON

DEPARTMENT OF HUMANITIES AND SOCIAL SCIENCE EDUCATION

COURSE TITLE: LOCAL GOVERNMENT ADMINISTRATION

COURSE CODE: 304

GENERAL CONCEPTS

In May 1982, the PNDC government of Ghana, which had come to power following a successful
revolution on December 31, 1981, issued its first major policy document, called PNDC policy guidelines. In
it, the council stated two basic policy positions on local government and decentralization.Qn. Which of
the policy guidelines states two basic policy positions on local government and decentralization?

Over the next seven years, until the promulgation of the local government law 1988, PNDCL 207, the
council struggled with issues of the re-demarcation of district boundaries, the structure of the local
government, the definition, and variants of decentralization to inform a new local government. PNDCL
207 established district assemblies as the basic units of local government in the country. The constitution
had the entire chapter of Chapter 20 devoted to local government and decentralization. The modification
introduced by the constitution necessitated an amendment to the local government law, which was
consequently repealed and replaced with the new law on local government (the Local Government Act
1993, Act 462).Qn. Chapter 20 of the Constitution of the Republic of Ghana is devoted to what?Local
government, in its simplest form, is government that is specific to a particular locality, for example, a
district. It is the form of government that has no share in sovereignty and is entirely subordinate to the
central authority in a unitary state such as Ghana. Local government is particularly important in unitary
systems because it is the only form of government outside the center. Local governments are legitimate
authorities that perform some functions on behalf of the states within a particular, well-defined territory.

Other definitions: local government authority is a sub-governmental unit set up by the central
government through an act of Parliament to administer a local area. The district assemblies in Ghana are
examples of local government authorities. Local government also refers to the system of government
that is responsible for the administration and governance of a specific geographic area, such as a city,
town, or region. Local governments are established to manage and provide services to residents within
their jurisdiction, including services like public safety, education, transportation, and waste
management. Local governments are typically structured with elected officials, such as the district chief
executive (DCE) or assembly members, who are responsible for making decisions and policies that affect
the local community.
Local government distinguishes between two broad types of government, namely:

1. Local state administration, which manages local affairs on a day-to-day basis

2. Local representative bodies

Qn. Distinguish between the two broad types of local government.

Key ingredients of local government

1. Specification of local government: government should not be regarded as just another local partner
but as a principal agent of the local development process.

2. Local government capacity building is a key condition for a successful local government development
process. The focus should be on the local government's ability to adapt to the changing role of the state
and to perform in a multi-actor environment.

3. Local public finance: the establishment of sound local finance systems requires innovative approaches
to funding municipal infrastructure and services.

4. Accountability of local government: the accountability of local government must be critically

considered. This entails accountability to the citizens, to state actors, and to non-state actors.

Qn. Outline the three ingredients of local government.

KEY ROLES OF LOCAL GOVERNMENT

1. As a development actor, local governments are regarded as principal and legitimate agents of the
local development processes. Local government as development actors promotes the human
development of their own communities, improving the lives of the local people and facilitating their own
efforts to improve the local conditions of living. The government of Ghana decentralization action plan
states that the assembly delivers critical services such as basic education, primary healthcare,
environmental hygiene,municipal transport, waste management, market management, lorry park, and
settlement planning.

2. As administrative units. Local governments, as administrative units, are the hubs around which many
administrative activities take place. 3. As a consultative function of local government, local government
is the medium through which popular participation and political education could be broadened.

OBJECTIVES OF LOCAL GOVERNMENT

  Providing opportunities for local communities to exercise their democratic rights to self
governance and decentralisation at the local level.
 Mobilizing human and material resources through involvement of members of the public in their
local government development.
 Providing two-way channel of communication between the local communities and central
government.
These objectives compared very well, can be used to address the concept of decentralisation.

DECENTRALISATION AND LOCAL GOVERNMENT

Governments have realised the need to reach out easily to more people at the grassroots without
hindrance. This is to ensure that the resources from central government effectively trickle-down to the
poor and needy in the local communities. This process, whereby, functions, powers, skills, competence,
means and resources are transferred to local government level of governance is known as
decentralisation, which could be political, administrative, fiscal and market or economic oriented.

Qn. Briefly define decentralisation

With centralisation power and authority is concentrated in Accra ( Central government ) . The heads of
government departments at district level are extensions of central government. They do not have the
power and authority to act independent without prior approval from central government in Accra or
consulting central government office in Accra.

PROBLEMS ASSOCIATED WITH CENTRALISED POWER

1. Poor service delivery, corruption, and mismanagement

2. Lack of transparency, lack of accountability, lack of participation

DIMENSIONS OF DECENTRALISATION

 Political decentralisation
 Administrative decentralisation
 Fiscal decentralisation
 Market or economic oriented decentralisation

POLITICAL DECENTRALISATION
Political decentralisation refers to situations where political power and authority have been partially
transferred to sub-national level of governance ; it is type of decentralisation that present the most direct
link to democracy,popular participation and empowerment. In Ghana political decentralisation includes;

1. The re-demarcation of local government boundaries

2. Establishment of district assemblies
3. Provision of legislative powers to district assemblies to issue bye-laws.

ADMINISTRATIVE DECENTRALISATION

Administrative decentralisation seeks to redistribute authority, responsibility and financial resources for
providing public services among different levels of government.

Administrative decentralisation has three major forms;

 Deconcentration
 Devolution
 Delegation

DECONCENRATION

Deconcentration entails the shifting of the workload from the central government ministries, department
and agencies to offices outside the headquarters where decisions are made without transferring the
corresponding authority to make decisions at the destinations of the transfer. Deconcentrated offices can
be opened at the national , regional, district and sub-district level. The exercise of the supervision
authority is paramount.

DEVOLUTION

Devolution involves the legal conferment of powers and the performance of specific functions by formally
constituted regional bodies. Those bodies exercise those powers, and perform those functions without
reference to the central authority and take legal responsibility of the consequences of the exercise.

DELEGATION

Delegation: when the functions and power is delegated; it means that the person actually vested with
the authority to make the law tasks another person to do something on his behalf. In that sense,
delegation can not be a form of decentralisation. This is because the legal responsibility permanently
remains in the body or person in whom the authority was originally vested.
Qn. Why do you think delegation can never be a form of decentralisation?

Ans: Legal responsibility permanently remains in the body or person in whom the authority was originally
vested.

Qn. What form of decentralisation is practiced in Ghana?

Ans: Deconcentration

FISCAL DECENTRALISATION

Fiscal decentralisation refers to resource reallocation to sub-national levels of government including the
delegation of funds within sector ministries to deconcentrated levels. In Ghana fiscal deconcentrations
include;

1. The transfer of discretion over both capital and recurrent expenditure to MMDAs (Metropolitan,
Municipal, and District Assemblies)
2. Central government transfers such as district assembly common fund
3. Resource mobilization to support the delivery of public services

MARKET OR ECONOMIC ORIENTED DECONCENTRATION

Market or economic oriented deconcentrations : In market deconcentration businesses, community

groups, corporates, private voluntary associations, and other NGO’s are allowed to carry-out functons
that have primarily been the responsibility of government.

The key challenges encountered in a decentralised form of governance are as follows;

1. Inefficiency
2. Weak administrative or technical capacity at the local level
3. Absence of devolution of financial resources to the local level
4. Poor coordination of national policies

IMPORTANCE OF LOCAL GOVERNMENTS

1. Local government's have a far degree of autonomy and therefore can take initiative and make
experiment.
2. Participatory local government's encourages responsible citizenship and local democracy
3. Local government may be a barrier against an all powerful central government and the abuse of
power. It helps to disperse power and diminish the danger of an over centralised state.
4. Local government in Ghana has from time immemorial been a part of the country's way of life,
its heritage and culture.
KEY PRINCIPLES TO CONSIDER IN DESIGNING LOCAL GOVERNMENT'S FOR GOOD GOVERNANCE

1. Constitutional and legal recognition of local democracy. Local democracy should enjoy
Constitutional and legal recognition. Legal and constitutional recognition are important to
protect the fundamental principles of local democracy.
2. The ability to elect local representatives. Citizens should be able to elect their local
representatives in conditions of political freedom.
3. Opportunity to participate in local decision-making. All citizens should be able to participate
actively in the local democratic process. Local democracy gives citizens the freedom to
participate in decisions that are locally appropriate and serves the needs of the local community.
4. Open government ( Accountability). Local government should be accountable to the community
it serves.
5. Inclusiveness. The process of local decision-making must reflect the social, economic,
environmental, and cultural needs of the entire community. Decisions should be made at the
level closest to the community to which they relate.
6. Adequate and equitable resource allocation.
7. Transparency in the dealings of local government
8. Defined legislative framework

THE STRUCTURE OF THE LOCAL GOVERNMENT IN THE FOURTH REPUBLIC OF GHANA

The structure of the local government in the fourth Republic is made up of Regional Coordinating Council
(RCC) and four-tier metropolitan and three-tier municipal/district assembly system.
Questions: Number of ;

1. Metropolitan Assemblies in Ghana

2. Municipal Assemblies in Ghana
3. District Assemblies in Ghana

REGIONAL COORDINATING COUNCIL ( RCC )

The Regional Coordinating Council consists of the regional minister as the chairman and his two
deputies/deputies, the presiding member of each district assembly and District Chief Executive ( DCE) of
each district in the region, two chiefs from the regional House of chiefs, and the regional heads of
departments of the regional Coordinating Council without voting rights. The RCC are established for
each of the sixteen regions of Ghana. They are the administrative and coordinating rather than policy-
making bodies.

FUNCTIONS OF THE REGIONAL COORDINATING COUNCIL

1. Monitor, coordinate and evaluate the performance of the district assemblies.

2. Monitor the use of all monies allocated or released to the districts by any agency of the central
government.
3. Review and coordinate public services generally in the region.
4. Resolve any conflict within the district assembly and any any agency of central government.
5. Provide security including managing conflict within the region. Settling chieftaincy, land ,and
tribal disputes
6. Coordinate district development plans and programmes and ensure that these plans and
programmes are compatible to the national development policies.

METROPOLITAN, MUNICIPAL AND DISTRICT ASSEMBLIES (MMDAs)

MMDAs consist of the chief executive, seventy percent of members directly by universal adult
suffrage , member or members of Parliament representating constituencies with the district and
thirty percent of members appointed by the president in consultation with the chiefs and other
interest groups. The chief executive is nominated by the president approved by 2/3 of the
members of the district assembly present. The assembly has a presiding member who is elected
from among the assembly members by 2/3 of all the members of the assembly.

METROPOLITAN DISTRICT ASSEMBLIES

The metropolitan is established by district with a population with 250,000 and over.
Currently there are six metropolitan assemblies in Ghana;
a. Tema
b. Accra
c. Kumasi
d. Sekondi Takoradi
e. Tamale
 f. Cape coast

MUNICIPAL ASSEMBLY

The municipal assembly is established for a single compact settlement with a population of 95,000 and
above, and consequently referred to as " one-town assembly "

Which of the district is referred to as" one-town district ".

DISTRICT ASSEMBLIES

District Assemblies exist in geographically continuous areas with a population of 75,000 and above.
Currently there are one hundred and forty-six district assemblies in Ghana.

SUB-METROPOLITAN DISTRICT ASSEMBLIES

The sub-metropolitan district Council are immediately below the metropolitan assemblies

Qn. How many sub-metros do we have in Ghana?

The urban Council of not less than 25 and not more than 30 members. The members are made up of not
more than eight persons, elected from among the members elected from the district assembly.

ZONAL COUNCIL

The Zonal Council exists in the municipal assembly area only . It consists of not less than fifteen and not
more than 20 members, and made up of not more than five persons elected.

TOWN/AREA COUNCIL

The Town/ Area Council consists of not less than fifteen and not more than 20 members, and made up of
not more than five persons elected.

THE UNIT COMMITTEE

A unit is normally a settlement or group of settlement with population between 500 to 1000 and higher
population of 1000 to 1500 in urban areas.

KEY INSTITUTIONAL STRUCTURES

District Assemblies by the mode of their creation and responsibilities have a governance role. These roles
are performed through established institutional structures.

1. GENERAL ASSEMBLY
2. THE EXECUTIVE COMMITTEE
3. THE SUB-COMMITTEE
4. THE TECHNICAL UNIT

SUB- COMMITTEES

EXECUTIVE COMMITTEE
1. Coordinate plans and programmes of sub-committees and submit these plans as comprehensive
plans of action to the district assembly.
2. Implement resolutions of the district assembly
3. Oversee the administration of the district in collaboration with the office of the district chief
executive.
4. Harmonise, monitor and evaluate district development plans, programmes ,projects and policies.
NB: the public relations and complaints committee play an oversight responsibility of the
activities of the district assemblies. This committee receives, investigates, and make
recommendations to the district assemblies on public complaints about the conduct of the staff
and local members of the district assemblies. Qn. Outline three committees of under the
executive.
Qn.Give three functions of the social services committee
Qn. Outline any two functions each of the various committees under the executive committee.

STRUCTURE OF THE EXECUTIVE COMMITTEE

FUNCTIONS OF DEVELOPMENT PLANNING

1. It takes a comprehensive look at the district

2. It identify the economic resources and potential of the district

FUNCTIONS OF SOCIAL SERVICES COMMITTEE

1. It identify the strengths and weaknesses of the social services area

2. It develops the information base on these areas of social development

FUNCTIONS OF THE WORKS COMMITTEE

1. It takes a comprehensive look at the needs and progress of the district

2. It develops an information base on each of the programmes in function areas

FUNCTIONS OF FINANCE AND ADMINISTRATION COMMITTEE

1. It examines the general financial position of the assembly.

2. It examines the revenue mobilization and expenditure trends of the assembly.

FUNCTIONS OF THE JUSTICE AND SECURITY COMMITTEE

1. It examines the intra and inter district conflicts.

2. It recommends to the executive committee ways and means to resolve conflicts.

AD-HOC COMMITTEE

1. Food and agriculture

2. Education and culture sub-committee
3. Health , environment and sanitation
4. Disaster management
5. Youth and sports

FINANCING THE NEW LOCAL GOVERNMENT SYSTEM IN GHANA

Local government finances can be categorised into two based sources

1. Local generated fund ( Traditional)

2. Central government transfer

Composition of locally generated revenue

Locally generated revenue are derived from six main sources. These are ;
 1. Rates
2. Lands
3. Fees
4. Licenses
5. Trading services
6. Miscellaneous

BASIC RATES

They are a kind of Poll tax levied on individuals between the ages of eighteen and seventy

LANDS

These are taxes levied on property or properties. It is otherwise known as property rates.

FEES

In accordance with section 34 of Act 462 .

Examples of fees;

1. Slaughter houses

2. Market dues eg. Stores ,trading kiosk

LICENSES

1. Dog licences
2. Pork licences
3. Petroleum installation
4. Lorry parks

CENTRAL GOVERNMENT TRANSFERS

1. Grant-in-Aid: Grant-in-Aid was administer by the ministry of finance and economic planning which
employed a simple sharing formula between city-councils , district councils, with the regional capitals
and other districts respectively. As a form of central government transfers, Grant-in-Aid were supposed
to be project specific. The grants were irregular and the system was often criticised as having no rational
or distribution basis. Another criticism was that grants were always released at the close of the financial
year and through project specific district councils christened as " Christmas bonus."

2. Ceded Revenue: The ceded revenue is derived from revenue sources which were previously taxed by
the central government through the internal revenue service,but which the central government has
"ceded " to the district assemblies in pursuit of decentralisation ,the ceded revenue is central collected by
the internal revenue service (IRS) now Ghana Revenue Authority ( GRA), and the total ceded revenue for
the year is transferred to the local government ministry ,which shares it among the district assemblies
using the formula approved annually by cabinet.

Alternatively, Ceded revenue refers to revenue that is collected by the central government and then
distributed to regional or local governments based on a predetermined formula or agreement. In the
context of Ghana, ceded revenue is significant as it involves the allocation of funds from the central
government to the various regions or local authorities within the country. This mechanism helps ensure a
fair distribution of resources and promotes development across different regions of Ghana.

My Qn. How crucial is the act or process of ceding revenue to the local government? This process ensures
that funds are allocated to local authorities for development projects and services, promoting
decentralisation and local governance in Ghana, hence this makes it crucial. Alternatively, This
mechanism helps ensure a fair distribution of resources and promotes development across different
regions of Ghana.

SOURCES OF CEDED REVENUE

 Entertainment Duty: Act 1962( Act 150) article 159

 Casino Revenue
 Betting tax
 Gambling tax
 Income tax
 Advertisement tax
 Daily transport tax

Qn. Outline four sources of revenue under ceded revenue.

3. District Assemblies common fund. Article 252 clause 1 of the 1992 constitution established a fund ,
called the district assemblies common fund ( DACF) . The formula for the distribution of the district
assemblies common fund as developed by the administrator over the years uses five main factors as
inputs;

Qn. What is the equality factor?

 Equality factor. Under this factor every assembly irrespective of their size or population is
allocated an equal amount of the funds.
 Population density factor: under this factor the greater the population density of a district the
greater the amount they receive. To put it mildly the greater the population the greater the
amount allocated or received.
 Service factor: under this factor, the greater the population of a district, the more the funds the
assembly receives. This is because the more people there are, the more the pressure on the
facilities provided.

ASSEMBLY MEMBERS

The plight of assembly members in Ghana

Assembly Members are key facilitators of developments at the local level in Ghana. They are
elected for four-year re-electable twice terms (twelve years in all), and are not to be identified
with any political party. They do not receive salaries, but receive transport allowances when they
attend the Municipal/District Assembly (MDA) meetings (ILGS & MLGDE 2006). While the current
government has promised to pay all Assembly Members, this payment has not yet materialised
(NDC 2008 Manifesto: 86). Because of the dearth of empirical research on the functions of
Assembly Members in Ghana, many challenges and issues they face appear to be unknown.
These include, but are not limited to:
1)Non-payment of salaries;
2) Relating to partisan M/DCEs;
3) Working with weak Unit Committees; and
4) Relating to Traditional Chiefs.

NON-PAYMENT OF SALARIES
Various reasons, which are categorized into political ambitions, volunteerism and family/friends’
pressures, have influenced Assembly Members to take up the role. Those with political ambitions
explained that the role was a first step into public service. Although the underlying principle was
to serve the people, they considered it a foundation upon which they would build their political
careers.
The fact that Assembly Members are not paid, but expected to do so much, has led to the
misappropriation of funds earmarked for local development, one instance being the Community-
Based Rural Development Projects (CBRDP). Because of the ‘investment’ some Assembly
Members made to their work, they tended to see the CBRDP as an opportunity to recoup
dividends. As a result, in some localities, the Area Council Chairmen and project officials disclosed
that some Assembly Members awarded the procurement of the project’s materials to themselves
and/or inflated the prices.

RELATING TO 'PARTISAN ' MUNICIPAL/DISTRICT CHIEF EXECUTIVES

As briefly explained earlier, the Community-Based Rural Development Project (CBRDP) was
designed to strengthen the country’s local government sub-structures; ultimately, the Area
Councils.11 Although the Area Councils were expected to be the implementers of CBRDP, they
relied heavily on the MDAs, as they lacked the technical capacities required. Given that
constitutionally DCEs are the most powerful figures at the MDA level, they supervised the
selection of the beneficiary Area Councils.
 As DCEs determined which Area Council would benefit from the CBRDP, we found that some of
the projects were politicised and given to unqualified localities.12 In Ghana, DCEs are eligible to
contest parliamentary elections. As a result, some of them used the CBRDPs as political machines
to launch their campaigns or win favours for votes

WORKING WITH WEAK UNIT COMMITTEES

Unit Committees represent their respective Electoral Areas in the Town/Area Council (see Figure
1). They are also expected to work closely with the Assembly Members so as to be in touch with
the people; play important roles in public education; organising communal labour; raising
revenue; ensuring environmental cleanliness; registering births and deaths; enforcing settlement
planning; laying out and supervising District Assembly by-laws; implementing taxation; and
monitoring of self-help or community-based projects (Local Government Act, 1993, Act 462,
Section 24 (1). Consequently, if the Unit Committee of an Electoral Area were weak, the work of
the respective Assembly Member would be very daunting.

Explaining why the Unit Committees are weak, Ahwoi (2010) argues that there is a perception
among Ghanaians that, considering the numbers involved, the cost of Unit Committee elections
do not justify the doubtful benefits derived from them. He argues further in favour of the
suggestion that the country should save on costs
by revisiting the original plan of holding Unit Committee elections by show of hands, as
established under the Electoral Commission’s Public Elections Regulations, 1995 Constitutional
Instrument 10,
Another explanation for their ineffectiveness is that Unit Committees are not allowed to perform
their decentralised functions. For instance, while there have been five Unit Committee elections
conducted so far during the era of the Fourth Republic (1992, 1996, 2000, 2004 and 2008), Kyei-
Baffour (2009) and Ahwoi (2010) argue that these Committees have never performed any visible
functions.

RELATING TO TRADITIONAL CHIEFS

Ghana’s local government system is such that Assembly Members would not succeed if they
were not in league with the Traditional Chiefs of the Electoral Areas they serve. The influence of
Ghanaian Traditional Chiefs and how this influence impacted on the outcomes of the CBRDP.
Because Ghanaian Traditional Chiefs are constitutionally recognised as the custodians of all
lands in the country, they tend to demand right of control over development projects that fall
within their traditional areas. Many of the Traditional Chiefs interviewed asserted, “The
Assembly Member does not own the gong-gong of this village … I do!” This meant that as long as
the Assembly Member did not submit to the Chiefs’ whims, they could not organise anything
successfully in the locality.

FUNCTIONS OF ASSEMBLY MEMBERS

Section 16 of the Local Government Act, 1993, Act 462 (see ILGS & MLGRD 2006) expects an
Assembly Member to:

Maintain close contact with his Electoral Area, consult his/her people on issues to be discussed in
the District Assembly and collate their views, opinions and proposals;
Present the views, opinions and proposals to the District Assembly;
Attend meetings of the District Assembly and meetings of the sub-committees of which he is a
member;
Meet his/her electorates before each meeting of the Assembly;
Report to his electorate the general decisions of the Assembly and its Executive Committee and
the actions s/he has taken to solve the problems raised by residents in his Electoral Area;
Draw attention in general debate to national policies which are relevant to the subject under
discussion;
Actively participate in the work of the sub-committees of the Executive Committee [of the District
Assembly];
Bring to bear on any discussion in the Assembly the benefit of his skill, profession, experience or
specialized knowledge;
Maintain frequent liaison with productive economic groupings and other persons in the District;
Take part in communal and development activities in the district.