How to support financially initiatives of local self-government?

By Naznacheniya I. Otstavki

In a democratic society institutions of local government actively participate in the decision making on issues of education, public health care, development of economy within the territory supervised by them. However, their opportunities are, in this respect, limited due to deficit of financial assets. Therefore, many remarkable innovations remain unrealized. How to solve this, typical for the countries of Central Asia, Southern Caucasus (and, probably, other regions of the world) a problem?