Is more money to councils the answer to local problems?

From Zambian Economist Tue Oct 18 2011, 03:46:00

President Michael Sata recently made a rather radical proposal that has not garnered much debate :

"OUR GOVERNMENT WILL ALSO DEVISE AN APPROPRIATE FORMULA FOR SHARING NATIONAL TAXES COLLECTED AT THE CENTRE WITHIN THE JURISDICTION OF EVERY LOCAL AUTHORITY IN ORDER TO STRENGTHEN THEIR REVENUE BASE".

This could be quite revolutionary, depending on the formula devised. But it also raises big questions in relation to the effectiveness of the local councils to handle greater revenue. There are issues around local politics and the scourge of corruption.

What is your view on this proposal? How should national revenues be divided? What dangers need to avoided, and how?

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