This publication shares knowledge and experience accumulated by UNCDF in designing, piloting, scaling up and implementing Local Government Performance-Based Grant Systems (PBGSs) that are now being adopted in a variety of countries.

The publication provides insights into the rationale and principles of PBGSs, including a discussion of the challenges that PBGSs seek to address, a comparative assessment of their impact and an analysis of the technical and policy challenges faced in designing and implementing such fiscal instruments.