Soru

Read the passage provided below and answer the question that follows:

While sub-national governments in developing nations are at the frontlines of climate vulnerability, their capacity to execute long-term adaptation infrastructure remains severely constrained by structural fiscal deficits and restricted borrowing authority. National decentralization frameworks often transfer executive responsibilities for climate resilience—such as flood mitigation, urban drainage, and heat-resilient housing—to municipal authorities without transferring corresponding revenue-generation powers or direct access to international green funds. Consequently, local municipalities remain perpetually dependent on discretionary fiscal transfers from central governments, which are frequently unpredictable, politicized, and tied to short-term budgetary cycles rather than multi-decade adaptation horizons. Furthermore, financial institutions and capital markets view sub-national entities as high-risk borrowers due to weak credit ratings and low institutional capacity, further locking them out of municipal bond issuance. To prevent urban climate vulnerability from escalating into systemic economic disruption, fiscal decentralization must evolve beyond administrative delegation to encompass genuine financial empowerment, enabling municipalities to independently mobilize adaptation capital, leverage green finance instruments, and build enduring institutional capacity.

Which of the following statements best captures the central theme of the passage?