The 2nd Global Report of United Cities and Local Governments (UCLG) on Decentralization and Local Democracy analyzes the architecture of fiscal decentralization in one hundred and ten countries as well as in metropolitan areas. In the majority of these countries, local authorities are taking on more and more responsibilities in terms of public investment and in the provision of essential services for both economic development and the well being of populations.
However with accelerating urbanization and the changing world context (climate change, increasing risk of natural disaster, migration, aging populations in certain countries), existing funding does not allow local governments to respond to the urbanization of poverty , nor to the growing need for investment. The economic and financial crisis which began in 2008 only worsened this divide. Beyond a simple state of affairs the Report proposes recommendations to strengthen local government finance.