Allocation of Community Development Funds to Gminas by Formula

Research Report

Allocation of Community Development Funds to Gminas by Formula

Illustrative Analysis for the Communal Credit and Development Program
March 22, 2000

Abstract

This report suggests an alternative to the current method of distributing sub-national grants in Poland. Referring specifically to the national government's allocation of community development funds to gminas (localities), the report proposes using a formula-based method rather than the existing application method. The application method tends to disadvantage smaller, less-organized gminas, which also tend to have the greatest investment needs. It also prevents gminas from planning for future investments since the outcome of the application process is uncertain. This report details a formula for diagnosing local infrastructure and housing investment needs, and allocating larger per capita grants to gminas that demonstrate such need.

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