Large Cities Support Programme (LCSP)

1. Large Cities Support Programme (LCSP) • Rationale of LCSP • Objectives of the Programme • Direct benefits to Cities • Capacity Building

2. What is the Challenge • Current Intergovernmental fiscal transfer system is not sufficiently flexible to support effective strategic planning • Strategic planning framework is often institutionally ‘dislocated ’ and forced to compete for sources of funding • Perpetuates sector-specific decisions which has hampered effective integrated planning

3. Key objective of the programme • Support and strengthen the service delivery and management capacity and systems of South African cities • Key subsidiary objectives would be to: • enhance the strategic management capacity of cities on core aspects of public financial management and service delivery; • Realign financing of cities, primarily through the repositioning of fiscal transfers; • strengthen mechanisms of citizen interface and oversight over municipalities.

4. Large Cities Support Programme • An opportunity for the Government of South Africa and its cities to: • Leverage World Bank’s experience in the design and actual implementation of intergovernmental fiscal transfers, in urban transport, job creation, human settlements, green cities and local governance • National Treasury innovating already – USDG which allows cities to use the fiscal instrument to drive strategic planning • LCSP will strengthen this approach through capacity support primarily directed at cities as drivers of integrated planning

5. Large Cities Support Programme • Leverage the World Bank as a platform, benefitting directly from other countries’ experience in decentralization and urbanization (Brazil, China, India,….) • Use the World Bank’s convening power to work with other partners of development under an unique framework • Deepen SA’s voice on issues of local governance and within the context of the emerging role of MICs

6. Direct Benefits of the LSCP to the Cities • Enhanced Fiscal Transfer Mechanisms – predictable, transparent, flexible and result oriented, holding cities accountable • City to City Collaboration: LSCP will be a platform of exchange allowing cross-learning on specific topics. For example, (management of assets, integrated urban development, planning, budgeting..) • Capacity building provided to the cities will focus on asset management, land management, integrated planning and budgeting, financial management, procurement, green development and good governance. • Capacity building will consist of a number of activities, including direct technical support to the Cities, the promotion of cross-learning among cities on specific themes, as well as direct training

7. Promoting a platform of exchange among Cities • By building on opportunities for learning: • Green cities (energy efficiency, low carbon city initiative) – link to COP 17 • Human settlements/Informal Settlement Upgrading (Leveraging worldwide experiences, from Brazil, India) • Integrated Public Transport (city-to-city peer learning program drawing lessons learned from China) • Strengthening good Governance – how to fight corruption at the local level – US cities/ New York