The World Bank's role of assisting a recipient country in developing a viable financing plan that identifies potential co-financiers is growing. The role of project financing in development has been expanding rapidly in some regions, although it has not yet been rooted widely in Africa. In order for governments in the region to attract more project finance, it may have to make commitments in the form of concessions, guarantee mechanisms, and a business-oriented environment that ensures the private sector of their commitment to changes. Revisiting Decentralization Evidence shows that government programs work better when they seek the participation of potential users, and when they tap the community's reservoir of social capital. The benefits show up in smoother implementation, greater sustainability, and better feedback to government agencies.
Decentralization is a multi-dimensional process that proceeds with success and setbacks.
Initiatives to decentralize the process of decision-making in Africa have evolved around the three substantial dimensions of political, fiscal and institutional decentralization. The importance of these components is widely recognized, yet conceived to be complex in its structure and internal relationship, and therefore requires a thorough analysis. The decentralized institutions will need to build up municipal and financial competencies or find ways to contract them out to cover the costs of providing rural public goods and services. In the highway sector, the Bank estimates the road maintenance requirements and ensures that they are included in national budgets and financed. A similar approach needs to be found to do this for municipal and village transport infrastructure, since local financing sources are unlikely to be adequate to meet the needs.