Governments in developing countries have crucial issues in delivering basic amenities to their population, such as potable water, sanitation, suitable housing, and electricity, as the world’s fastest urbanizing region. Although local governments are generally responsible for providing these services, few developing countries are fiscally decentralized, and municipal governments lack the financial capacity to adequately implement these services. Because of their small revenue bases, sub-national governments are frequently compelled to rely on intergovernmental transfers from the federal government.