Channeling Resources to Local Development Concerns: Issues and Options

The article gives an overview of the bene?ts and problems that go along with the process of devolution. While local government units (LGUs) appear to be more competent in providing basic services to people, realities like spillover effects and inequalities among LGUs warrant the intervention of the national government (NG). Certain issues arise from such intervention, the most notable of which are ?nancing arrrangements for local projects and differences in development priorities between LGUs and NG. This paper (as well as the other papers in this issue) addresses these concerns by proposing some policy guidelines and options for a more ef?cient transfer of resources to LGUs.