THE POLITICAL ECONOMY OF LOCAL SELF GOVERNMENT IN DEVELOPING COUNTRIES AND ITS IMPACT ON GOVERNANCE PRACTICES

Povzetek

This study examines the political economy of local self
government in developing countries and its influence on
governance practices. Using a mixed methods approach, three co untries with differing degrees of fiscal autonomy
and political decentralization were analyzed. Quantitative data from global governance indicators were
complemented with qualitative insights from interviews with officials, community leaders, and civil soc iety
representatives. The results indicate that higher fiscal independence correlates with improved service delivery and
greater citizen satisfaction, while political patronage and dependence on central transfers hinder governance
effectiveness. Citizen pa rticipation emerged as a significant factor in enhancing transparency and reducing
corruption perceptions. The findings underscore the importance of integrating fiscal empowerment, political
accountability, and active community engagement to strengthen gov ernance at the local level.