ABSTRACT
This chapter explains what initially appeared to be puzzling, often paradoxical, donor attitudes, not simply questioning the format of support to decentralisation but extending to doubts as to the appropriateness of any direct support to the very local governments that were at the leading edge of the devolutionary initiative. Increasing donor support for overall decentralisation objectives, albeit via sectoral programmes and budgetary support rather than through individual projects, avoids, indeed evades, the problems inherent in dealing directly with a tiered governmental system and a multiplicity of local governments rather than one central government. External donors have been reluctant to put much faith in local government, often preferring deconcentration to devolution of power. Uganda's experience followed a pattern common to many developing countries, essentially involving the progressive reassertion of donor control over programme design and implementation. Uganda's reassertion of central government controls over local government expenditure was facilitated.
