Rationale of LCSP Objectives of the Programme Direct benefits to Cities Capacity Building

Large Cities Support Programme (LCSP)

Current Intergovernmental fiscal transfer system is not sufficiently flexible to support effective strategic planning

Strategic planning framework is often institutionally ‘dislocated ’ and forced to compete for sources of funding

Perpetuates sector-specific decisions which has hampered effective integrated planning

What is the Challenge

• Support and strengthen the service delivery and management capacity and systems of South African cities

• Key subsidiary objectives would be to:– enhance the strategic management capacity of

cities on core aspects of public financial management and service delivery;

– Realign financing of cities, primarily through the repositioning of fiscal transfers;

– strengthen mechanisms of citizen interface and oversight over municipalities.

Key objective of the programme

An opportunity for the Government of South Africa and its cities to:◦ Leverage World Bank’s experience in the design

and actual implementation of intergovernmental fiscal transfers, in urban transport, job creation, human settlements, green cities and local governance

◦ National Treasury innovating already – USDG which allows cities to use the fiscal instrument to drive strategic planning

◦ LCSP will strengthen this approach through capacity support primarily directed at cities as drivers of integrated planning

Large Cities Support Programme

– Leverage the World Bank as a platform, benefitting directly from other countries’ experience in decentralization and urbanization (Brazil, China, India,….)

– Use the World Bank’s convening power to work with other partners of development under an unique framework

–Deepen SA’s voice on issues of local governance and within the context of the emerging role of MICs

Large Cities Support Programme

• Enhanced Fiscal Transfer Mechanisms – predictable, transparent, flexible and result oriented, holding cities accountable

• City to City Collaboration: LSCP will be a platform of exchange allowing cross-learning on specific topics. For example, (management of assets, integrated urban development, planning, budgeting..)

• Capacity building provided to the cities will focus on asset management, land management, integrated planning and budgeting, financial management, procurement, green development and good governance.

• Capacity building will consist of a number of activities, including direct technical support to the Cities, the promotion of cross-learning among cities on specific themes, as well as direct training

Direct Benefits of the LSCP to the Cities

• By building on opportunities for learning:–Green cities (energy efficiency, low carbon city

initiative) – link to COP 17–Human settlements/Informal Settlement

Upgrading (Leveraging worldwide experiences, from Brazil, India)

– Integrated Public Transport (city-to-city peer learning program drawing lessons learned from China)

– Strengthening good Governance – how to fight corruption at the local level – US cities/ New York

Promoting a platform of exchange among Cities