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Submitted by Anonymous on
Recently I have read the "Performance-based Grant Systems: Concept and International Experiences," which analyzes fiscal transfer projects in several countries including LGSP in Bangladesh. It is a very interesting and informative analysis. The document is available in the following page: After reading the experiences of other countries, I felt that the unique value of LGSP in Bangladesh is in the close relationship with the Horizontal Learning Program (HLP), which promote mutual learning among UPs. Homepage of HLP is as follows: We can imagine that many local government units (LGUs) like UP can make a lot of good practices, once they receive discretionary funds for their development activity. We have witnessed many such examples in Bangladesh as mentioned in the above article. However, such good practices may not be disseminated to other LGUs, since they are quite isolated in the decentralization policies. In case of Bangladesh, LGSP co exists with the very active HLP, so that one UP can learn from others. This seems a very lucky situation comparing with other countries which have only LGSP type of block grant provision to LGUs but not HLP type of a forum of mutual learning among LGUs. The document does not mention this point. However, I believe that the experience of LGSP plus HLP in Bangladesh should be examined properly and informed to the development community as an international good practice of fiscal transfer projects. Also, the coverage of HLP in terms of fields as well as number of unions / upazilas should be increased more after the establishment of its permanent secretariat, so that HLP will become a real country-wide initiative like LGSP. Akira