Each of the developing countries will have a view on whether these objectives can best be achieved through central, regional and local administrations. An essential element in any successful administrative unit is the political backing necessary to ensure the co-operation of other agencies in the provision of utilities and other components of any development. It is important to ensure that adequate and timely financing arrangements are made by the various agencies responsible for components of development. Having established the sources of finance for the development, certain principles should be adopted in seeking to allocate the costs to the different agencies. Apart from the likely early financing difficulties, the system of recovering costs should follow the important principle that current costs should be met from current revenues, and the use of surplus funds arising from capital transactions should be avoided.