The research on decentralisation and Local Economic Development (LED) in Tanzania reveals several key challenges and opportunities. One major challenge is the inconsistency between decentralisation goals and actual implementation, where local government authorities (LGAs) often prioritize service delivery over economic development initiatives. The lack of adequate funding, inadequate capacity among local officials, and insufficient coordination between the central government and LGAs further hinder the success of LED programmes. However, decentralisation presents opportunities for enhancing local autonomy and fostering community-driven economic growth.
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