TheChallengeLocal authorities in all parts of the world play an increasingly important role in the delivery of fundamental basic public services. But they also face huge challenges. Most local authorities in developing countries are facing even bigger challenges today as a result of rapid and chaotic urbanization and the impact of more frequent natural disasters due to climate change.

The recent global financial and economic crisis has aggravated the challenges cities are facing. This report presents four papers that address various challenges facing local governments in developing countries in their efforts to mobilize adequate financial resources for urban development.