Abstract

Local governments are defined as political units or instrumentalities constituted by law (the peculiar or unique characteristics of which is their subordinate status to the central government) which have substantial control over local affairs and likewise have the power to tax. It is also defined as ‘a set of rule-making and rule enforcement activities binding upon a set collectivity, when the same collectivity is also subject to rules binding on at least one more inclusive collectivity (Cahill and Friedman, 1964).