Fiscal decentralization and rural development in Salaxlay District, Somaliland

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Kampala International University
The study sought to examine fiscal decentralization and rural development in Salaxlay District, Somaliland. The study objectives were; to assess whether or not fiscal decentralization promotes service delivery in Salaxlay District, Somaliland, to examine whether or not fiscal decentralization promotes the welfare of the people in Salaxlay District, Somaliland and to examine whether or not fiscal decentralization promotes capacity building in Salaxlay District, Somaliland. This study used cross-sectional research design to assess the respondents’ views towards fiscal decentralization and rural development in Salaxlay District. Both qualitative and quantitative approaches were used in this study in order to get a clear and in-depth insight into the subject matter. District development officers, community leaders and peasants who differed in interest, but share other characteristics such as socioeconomic status, educational background etc composed the respondents of the study. The total population of Salaxlay District is 9,235 inhabitants (Ministry of National Planning, 2016). The researcher randomly selected 4 villages out of 10 villages in Salaxlay District. Data was collected from primary and secondary sources using questionnaires and interviews, and well-answered questionnaire were organized into for meaningful interpretation by sorting and editing. The data was presented in tabular form, pie charts and bar graphs with frequencies and percentages. The study found out that 4.3% of the respondents strongly disagreed, 5.9% of the respondents disagreed, 8.1% of the respondents were neutral, 21.4% agreed and the remaining 60.3% of the respondents strongly agreed that fiscal decentralization can improve the efficiency of public service delivery through preference and allocative efficiency. This implies that the majority of the respondents were aware of the vital benefits associated with fiscal decentralization with regard to efficiency of public service delivery. There is positive significant relationship with a Pearson correlation coefficient of 0.611 and its significance which stood at 0.000. This indicates a positive significant relationship between fiscal decentralization and service delivery. This implies that fiscal decentralization embraces a variety of concepts which must be carefully analyzed in any particular country before determining if projects or programs should support reorganization of financial, administrative, or service delivery systems. The study recommends that there needs to be more discussion and agreement on the degree of balanced distribution of fiscal resources among different regions. Furthermore, what is important is for the national government to provide a steady stream of transfers that local governments can rely on for budget purposes.
Dissertation available full text (soft and Hard copy)
Decentralization, Rural development, Salaxlay District, Somaliland