The Role of Intergovernmental Organizations on Poverty Reduction in Africa. A Critical Literature Review.

Purpose: Fiscal decentralization will increase the degree of efficiency in the allocation of resources because sub-national governments have an information and proximity advantage over central governments when it comes to responding to the needs and preferences of local citizens. The overall objective of this study was to examine role of intergovernmental organizations on poverty reduction. Methodology: The paper used a desk study review methodology where relevant empirical literature was reviewed to identify main themes and to extract knowledge gaps. Findings: The study concluded that fiscal decentralization has distributive effects. The effect of fiscal decentralization on poverty reduction outcomes and human developments depends on the nature and design of fiscal decentralization, the extent of fiscal decentralization and county specifics. Since fiscal decentralization is implemented in various forms such as intergovernmental transfers, own source revenue assignment and expenditure decentralization, the effects of each of these were analyzed. The conclusions from the findings are presented in the following paragraphs. From the findings related to intergovernmental transfers the study concludes that intergovernmental transfers increase poverty incidence at low levels below 18.42 percent. Unique Contribution to Theory, Policy and Practice: It is recommended that it’s most appropriate for national government to be in charge of administration of welfare and equity programmes. This is because intergovernmental transfers and county expenditure were associated with increasing poverty and also have no effect on income inequality and health outcomes in the counties in Kenya. The administration of welfare and equity programmes such as cash transfer programmes, child nutrition, and maternal health care will be more beneficial if implemented and coordinated by the national government.