Local Government Financing of Climate Change in Ghana: Politics of Aid and Central Government Dependency Syndrome

Abstract

Uncertainties about the amount of resources needed to combat climate change, dwindling local resources, limited local autonomy and limited expertise constrain local governments (LGs) in their response to the effects of climate change. As a result, financing climate change remains a major nightmare for LG actors across diverse nested territorial containers. It certainly requires the embracing of a multifaceted approach – the use of system thinking where local governments’ resource husbandry is optimised to support external aid and central government transfer. A multifaceted approach brings onboard blended resources, diverse stakeholders, diverse resource mobilisation skills and schemes, and accountability measures. Also, given projected increases in future climate-induced public expenditure, albeit with uncertainties, reliance on a single resource mobilisation approach will be a recipe for inefficiency. This article argues that developmental aid and central government’s transfer remains inadequate to meet the increasing demand for adaptation cost at the local level in Ghana. In the face of the unequivocal impact of climate change risk, we contend that local resource husbandry must be optimised through different innovations to complement other major sources of financing. Our contention resonates with the school of thought that argues local level resources are more resilient to politicisation, are stable, and are predictable compared to international aid and central government transfer. Through qualitative in-depth interviews, empirical data has been drawn from local governments in Ghana to justify our claims.