Local Government Financing and Budget Reform Program Cluster

Local government reform is a complex undertaking, involving major changes in the regulatory framework, institutional arrangements, supporting infrastructure, and human capacity. It also requires a long-term perspective in both design and implementation. Thus, the government?s continuous commitment to reform, its ownership of the program, and collaborative support by the donor community are all necessary elements in designing local government reform through a programmatic approach. The Local Government Financing and Budget Reform program cluster shows that ADB, through continuous dialogue with the government and collaborative financing with other donors, was able to develop a well-designed program that is sufficiently demand driven. Substantial reforms were accomplished, which laid a stronger foundation for achieving the program's objective of more effective delivery of key government services at the local level. The program's success and likely sustainability can be attributed also to the technical assistance activities undertaken during implementation, which have strengthened the capacity of local officials in carrying out reforms.