New Analytics Note from the Emergency Governance Initiative presents an analysis of the impact of COVID-19 on subnational finances

As a result of the pandemic, city and regional governments are facing a ‘scissor effect’ of rising expenditures related to health and infection control, and a simultaneous drop in revenues, owing to economic disruption. Based on a survey of subnational finance departments, Analytics Note #03 presents an analysis of this ‘scissor effect’ and the wider impact of COVID-19 on the financial position of city and regional governments.

The Note will be followed by a Policy Brief entitled ‘Financing Emergencies in Cities and Regions: Ongoing Lessons from the Pandemic’. Drawing upon interviews with the Mayor of Freetown, Yvonne Aki-Sawyerr; Tehmina Akhtar, Deputy Director, UNCDF; Flo Clucas, Finance Spokesperson, CEMR; and Omar Siddique, Economic Affairs Officer, UNESCAP, the Policy Brief will present a more detailed picture of the main trends that have been emerging in municipal finance during the emergency period, outlining lessons that could be applied as a foundation for subnational governments to improve their financial response to future emergencies.

This is the third Analytics Note of the Emergency Governance Initiative (EGI) led by LSE Cities, United Cities and Local Governments (UCLG), and the World Association of the Major Metropolises (Metropolis). This Initiative investigates the institutional dimensions of rapid and radical action in response to global emergencies to provide city and regional governments with frameworks, knowledge, and resources to navigate the new demands of leading emergency responses.