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A Case Study of Ketu South Municipal Assembly (Ksma)

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A Case Study of Ketu South Municipal Assembly (Ksma) University of Ghana http://ugspace.ug.edu.gh UNIVERSITY OF GHANA THE IMPACT OF FISCAL DECENTRALISATION ON LOCAL ECONOMIC DEVELOPMENT IN GHANA: A CASE STUDY OF KETU SOUTH MUNICIPAL ASSEMBLY (KSMA) BY EMMANUEL JEFFERSON KWADJO ZUMEGAH (10443139) THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MPHIL PUBLIC ADMINISTRATION DEGREE JULY, 2015 University of Ghana http://ugspace.ug.edu.gh DECLARATION I EMMANUEL JEFFERSON KWADJO ZUMEGAH hereby declare that this thesis is my own academic research work towards the award of a master of philosophy degree in Public Administration and that no part of this work has been presented or published. All references used in this work has been fully acknowledged. I therefore take full responsibility for any omissions and commissions herein. ……………………………………….. …………………………….. EMMANUEL JEFFERSON KWADJO ZUMEGAH DATE (10443139) i University of Ghana http://ugspace.ug.edu.gh CERTIFICATION I hereby certify that this thesis was supervised in accordance with procedures laid down by the academic board of the University of Ghana, Legon. …………………………………….. ………………………………… DR. KWAME ASAMOAH DATE (SUPERVISOR) ii University of Ghana http://ugspace.ug.edu.gh DEDICATION. To my wife-Mrs. Evelyn Dzifa Melody Zumegah, my kids and to God Almighty iii University of Ghana http://ugspace.ug.edu.gh ACKNOWLEDGMENT The highest form of academic dishonesty I could reach is to assume that the entire work of this thesis is as a result of my individual strength. This thesis has been a solid team work between me and my affable supervisor. I express my sincerest gratitude to Dr. Kwame Asamoah for his direction, encouragement, tutorship and supervision. You have helped in incorporating new ideas and sharing experiences with me. I have in you a role model for life and am so grateful, Sir. I would also like to acknowledge all officers of the Ketu South Municipal Assembly (KSMA) especially the Municipal Chief Executive (MCE), the Municipal Co-ordinating Director (MCD), Municipal Budget Officer (MBO) and Municipal Finance Officer (MFO), and all other respondents who assisted me in data collection for this work. A special mention of Mr. Antwi and the staff of the Fiscal Decentralisation Unit of the Ministry of Finance, Accra is apt here. In addition, I am thankful for the insightful suggestions provided by Dr. Justice Nyigmah Bawole, Dr. Thomas Buabeng, Messrs Evans Sedzome, Elvis Jones Addo, Emma Tenakwah Snr., Miss Grace Mabena Obuah and Miss Afua Adjei all of the University of Ghana, Legon. I could not have shaped this study without the support and encouragement of all my colleagues in the 2015 MPhil group of Public Administration and Health Services Management of the University of Ghana Business School. Exceptional thanks also go to, all Economics students of Abor Senior High School, my fellow teachers, my family and friends particularly Mr. & Mrs. Agbenorwu who supported me from day one, Messrs. Lucas Dzramedo, Emmanuel Mensaklo, Henry Bannerman, Kobla Ehiekpor Miss Thelma Atsu, Miss Sedinam Katcher, and Constable Bashasha Dauda. My deepest love, gratitude and indebtedness to my Mom-Madam Josephine Agbekpornu, who prays day in and day out to God Almighty for my health and accomplishment. iv University of Ghana http://ugspace.ug.edu.gh TABLE OF CONTENTS DECLARATION ............................................................................................................................. i CERTIFICATION .......................................................................................................................... ii DEDICATION. .............................................................................................................................. iii ACKNOWLEDGMENT................................................................................................................ iv TABLE OF CONTENTS ................................................................................................................ v LIST OF ABBREVIATIONS ........................................................................................................ ix LIST OF TABLES ........................................................................................................................ xii LIST OF FIGURES ..................................................................................................................... xiii ABSTRACT ................................................................................................................................. xiv CHAPTER ONE ............................................................................................................................. 1 1.0 GENERAL INTRODUCTION ................................................................................................. 1 1.1 Introduction ............................................................................................................................... 1 1.2 Background of the Study .......................................................................................................... 1 1.3 Problem Statement .................................................................................................................... 4 1.4 Research Purpose ...................................................................................................................... 6 1.5 Research Objectives .................................................................................................................. 7 1.6 Research Questions ................................................................................................................... 7 1.7 Significance of the Study .......................................................................................................... 7 1.8 Structure and Organization of the Study. .................................................................................. 8 1.9 Conclusion ................................................................................................................................ 8 CHAPTER TWO .......................................................................................................................... 10 2.0 THEORETICAL AND EMPIRICAL LITERATURE REVIEW........................................... 10 2.1 Introduction ............................................................................................................................. 10 2.2 THE CONCEPT OF DECENTRALISATION AND FISCAL DECENTRALISATION. .... 10 2.2.1 Political Decentralisation. .................................................................................................... 13 2.2.2 Administrative Decentralisation. ......................................................................................... 14 2.2.3 Fiscal Decentralisation ......................................................................................................... 16 2.2.4 Sub-district Structures .......................................................................................................... 20 2.2.4.1 The Metropolitan Assembly ............................................................................................. 20 v University of Ghana http://ugspace.ug.edu.gh 2.2.4.2 Municipal Assembly ......................................................................................................... 21 2.2.4.3 District Assembly.............................................................................................................. 21 2.3 THE CONCEPT OF ECONOMIC GROWTH AND LOCAL ECONOMIC DEVELOPMENT ......................................................................................................................... 22 2.4 THE RELATIONSHIP BETWEEN FISCAL DECENTRALISATION AND LOCAL ECONOMIC DEVELOPMENT. .................................................................................................. 24 2.5 THEORY AND CONCEPTUAL FRAMEWORK. ............................................................... 28 2.5.1 Introduction .......................................................................................................................... 28 2.5.2 Public Value Theory ............................................................................................................ 29 2.5.3 Conceptual Framework ........................................................................................................ 30 2.6 HISTORICAL UNDERPINNINGS OF FISCAL DECENTRALISATION IN GHAN ........ 32 2.7 THE POLITICS OF FISCAL DECENTRALISATION IN GHANA. ................................... 36 2.8 SOURCES OF LOCAL GOVERNMENTS FUNDINGS IN GHANA. ................................ 38 2.8.1 Internally Generated Funds (IGF) to MMDAs in Ghana..................................................... 38 2.8.2 External Sources .................................................................................................................. 39 2.8.3 The District Assembly Common Fund (DACF). ................................................................. 39 2.9 Conclusion .............................................................................................................................. 40 CHAPTER THREE ...................................................................................................................... 41 3.0 RESEARCH METHODOLOGY............................................................................................ 41 3.1 Introduction ............................................................................................................................
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