Decentralisation may also have raised barriers to internal trade and the movement of factors of production because of weak administration and delays in document processing. The use of trade-distorting, revenue-raising measures by local governments increases the consumer price of goods, reduces competitiveness and discourages investment. Partly because of the resulting “compartmentalism” in the economy and the higher transactions costs for most economic activities caused by these activities, there is much donor interest and activity in improving local governance, including agricultural extension services and water and irrigation management (Box 2.1). Seven are involved in manufacturing and delivering farm inputs.