Local Governance More Consequential Local governments are also likely to become increasingly important sources of governance innovation because of their ability to solve problems for their populations. Local governments generally have the advantage of proximity to the problems of their constituents, Bangkok, Thailand accounts for almost legitimacy, accountability, and the half of the country’s economic output. 昀氀exibility to customize responses; allPhoto Bangkok / Pexels they also have less partisanship. Cities and subnational govern- ments have greater ability than national gov- governance is likely to be a locus for problem ernments to create and lead multisectoral net- solving, but with di昀昀erent constraints. works involving various levels of government, Like national governments, local governments private sector, and civil society; these partner- are likely to face budgetary constraints, par- ships have helped to revitalize some former ticularly after the COVID-19 crisis. Cities in the industrial cities in the West. Local and city developing world are likely to face signi昀椀cant governments—increasingly organized into net- 昀椀nancing gaps for infrastructure development works—will take action on international issues and climate change adaptation. In addition, such as climate change and migration, getting urbanization is likely to exacerbate urban-ru- ahead of national governments in some cases. ral societal divides, while the expanding role As urban areas grow in population and as for local and city governance may undermine hubs for economic activity, technology, and policy coherence when local and national innovation, these local governments are likely strategies for problem solving diverge. to gain increasing clout vis-a-vis national gov- ernments. Even in authoritarian regimes, local 88 GLOBAL TRENDS 2040 Image / Bigstock