Decentralization policies in asian development download. Fiscal decentralization in developing countries edited by richard m. Fiscal decentralization in developing countries edited by. Anecdotal evidence and case studies provide some insights, but additional policy experimentation and more systematic research are needed to understand more broadly the realities of and prospects for fiscal decentralization in developing countries. This book draws on experiences in developing countries to bridge the gap between the conventional textbook treatment of fiscal decentralization and the actual practice of subnational government finance. Rethinking decentralization in developing countries english abstract. Pdf on jan 1, 2018, roy bahl and others published fiscal decentralization and local fina nce in dev eloping countries find, read and cite all the research you need on researchgate. Evidence from oecd countries abstract this paper attempts to identify the effect of fiscal decentralization on public sector efficiency pse. Is fiscal decentralization harmful for economic growth. Impact of fiscal decentralization on private savings in a. As the studies of decentralization in 15 developing countries in this. Pdf on jan 1, 2000, paul smoke and others published fiscal decentralization in developing countries. Cited by this paper draws on the growing experience with decentralization in developing countries, to explore how a wide range of variables can affect decentralization efforts, and, how policies, and incentives can be designed to improve outcomes. Since 1980s, fiscal decentralization has been at the center stage of policy experiments among governments of developing and transition economies in latin america.
This movement is partly justified by appeal to the classic argument of tiebout 1956, who claimed that decentralized provision of public goods allows better fulfillment of diverse individual demands. Fiscal decentralization as development policy bahl. The extensive literature about the theory and practice is surveyed, and longstanding problems and new questions are addressed. A broader view of fiscal decentralization in developing. A movement toward fiscal decentralization is underway in many countries across the world. Fiscal decentralization and economic growth in selected. It focuses on the key choices that must be made in. Download fiscal decentralization in developing countries or read online books in pdf, epub, tuebl, and mobi format. Pdf fiscal decentralization and local finance in developing. A broader view of fiscal decentralization in developing countries. It uses the primary sources of data regarding economic activity of general, central, and subnational governments to evaluate the economic dimension of decentralization between 2005 and 20.
Fiscal decentralization in developing countries download. We use a panel data set of 46 countries over the 19701989 period to investigate the relationship between fiscal decentralization and economic growth. Political decentralization has advanced in most countries. Rethinking decentralization in developing countries.
Fiscal decentralization is a popular economic development strategy among transition and developing countries. Decentralization and local governance in developing countries. Trade and development isbn 0 521 64143 8 hardbound 1. The virtues and reality of decentralizing governance in developing countries have been the subject of vigorous debate since that time, and the fiscal aspect of decentralization has certainly been one aspect of that debate.
Pdf managing fiscal decentralization download full pdf. Fiscal decentralization and the efficiency of public. Fiscal decentralisation overseas development institute. This insightful study examines the decentralization experiences from 15 countries in different regions of the world. This study focuses on the relationship between fiscal decentralization and icrg index of corruption risk in both categories of emerging and developing countries, using a sample of 38 countries for the period 20002014. All of these countries have actively attempted to decentralize, or continue to do so, and have faced obstacles serious enough to either derail or significantly delay their decentralization objectives. The paper analyses the fiscal decentralization effects on economic growth in unitary countries of european union for the period 20052014. Decentralization in developing countries sometimes seems to be viewed as either a panacea or a plague either a cure for all the ills of such countries or an addition to their already heavy burdens.
Oates the point of departure for my contribution to this symposium is the striking contrast in the extent of fiscal centralization of the industrialized and the developing countries. Fiscal policy developing countries, intergovernmental fiscal relations developing countries, decentralization in government developing countries publisher cambridge, u. This paper draws on the growing experience with decentralization in developing countries, to explore how a wide range of variables can affect decentralization efforts, and, how policies, and incentives can be designed to improve outcomes. It outlines the reasons why decentralisation is usually undertaken in developing countries and how the administrative, political and fiscal. Studies in fiscal federalism and statelocal finance series roy bahl and richard m. Pdf fiscal decentralisation in developing countries lessons.
Fiscal decentralization and corruption in emerging and. In this article, we provide empirical evidence on the longrun relationship between fiscal decentralization and private savings in a developing country. Until now, however, there has been little understanding of how decentralization leads to large fiscal deficits and macroeconomic instability. Fiscal decentralization deterred corruption in advanced states, whereas greater autonomy in spending increased malfeasance in the developing world. The aim is to focus on expenditure and revenue decentralization giving importance to the effects of subnational revenue mobilization on this. However, developing countries presently still have less decentralization, particularly on the revenue side, than both developed countries today and the united states and europe historically. Click download or read online button to get fiscal decentralization in developing countries book now. An overview edited by professors bird and vaillancourt and featuring important research from leading scholars assesses the progress, problems and potentials of fiscal decentralization in a variety of developing countries around the world.
Subnational expenditures in developing countries as a percentage of total public expenditures have also increased over the past two decades. Fiscal decentralisation in developing countries essons for. Project muse fiscal decentralization in developing. Fiscal decentralization in developing and transition economies. Click download or read online button to decentralization and local governance in developing countries book pdf for free now. Fiscal decentralization and the challenge of hard budget. Pdf on jan 1, 2018, roy bahl and others published fiscal decentralization and local finance in developing countries find, read and cite all the research you need on researchgate. Fiscal decentralization in developing and transition. This site is like a library, use search box in the widget to get ebook that you want. The extensive literature about the theory and practice is surveyed and longstanding problems and new questions are addressed. We employ data envelopment analysis on a panel of 21 oecd countries over the. Bird this book draws on experiences in developing countries to bridge the gap between the conventional textbook treatment of fiscal decentralization and the actual practice of.
Fiscal decentralisation in developing countries essons for bangladesh there is an ongoing debate in bangladesh in civil society and among policymakers, whether the country should move from a highly centralised unitary state to a more devolved entity. Pdf fiscal decentralization in developing countries. The growth of interest in fiscal decentralization has meant that there has been something of a rush to enshrine this in policy the world bank has reported that about seventy countries see this as a major part of their. We have attempted herein to carry out an empirical analysis to examine these theories. Data from 17 developed and 17 developing states were obtained in order to conduct a regression analysis of various indicators. Rethinking decentralization in developing countries english. The empirical analysis was based on the multiple regression method.
The paper s starting point is the traditional fiscal federalism approach, though the primary measures for localcentral accountability, assumed in most decentralization discussions, may not hold, or are different in many developing countries. This paper also covers a large sample of countries, including developed, emerging, and developing economies. This public financial management introductory guide defines fiscal decentralisation and discusses how it fits into to wider decentralisation policy. The results revealed that fiscal decentralization reduced government effectiveness in developed countries. Indeed, it is important to clarify the concept of fiscal decentralization, as well as its various components. Fiscal decentralization and public sector efficiency. Decentralization and local governance in developing countries download decentralization and local governance in developing countries ebook pdf or read online books in pdf, epub, and mobi format. Fiscal decentralization and intergovernmental fiscal. Fiscal decentralization consists primarily of devolving revenue sources and expenditure functions to lower tiers of government. Distribution of conditional transfers contents acknowledgements 3 1. Downloading fiscal problems in argentina 19 laissezfaire ideology in chile 20. We take into consideration the particular impact of fiscal decentralization on private savings and investment as vehicles for fostering growth in pakistan over a period of almost four decades.
One important factor in determining the type of fiscal decentralization is the extent to which subnational entities are given autonomy to determine the allocation of their expenditures. It discusses the building blocks of fiscal federalism expenditure and. Decentralization is a complex phenomenon involving many geographic entities, societal actors and social sectors. View the article pdf and any associated supplements and figures for a period of 48 hours. Decentralization in government developing countries. Many commentators, however, have expressed concern that the. Abstract this paper surveys fiscal policy in developing countries from the point of view of longrun growth. We find a negative relationship between fiscal decentralization and growth in developing countries, but none in developed countries. This article examines whether this is the case, by analysing the relationship between decentralization and economic growth in 21 organization for economic cooperation and development countries during the period between 1990 and 2005 and controlling not only for fiscal decentralization, but also for political and administrative decentralization. By bringing the government closer to the people, fiscal decentralization is expected to boost public sector efficiency, as well as accountability and transparency in service delivery and policymaking. This book, based on a research project at the world bank, develops an analytical framework for considering the issues related to soft budget constraints, including the institutions, history, and policies.
An overview edited by professors bird and vaillancourt and featuring important research from leading scholars assesses the progress, problems and potentials of fiscal decentralization in a. Fiscal decentralization and local finance in developing. An indepth analysis of the fundamental role that decentralization plays in developing countries, using detailed statistical data to examine the actual fiscal structure between tiers of government, and the effects of decentralization at the local, national and international levels. Countries are reconsidering their fiscal systems and searching for the right balance between central government control and decentralized governance. Fiscal decentralization and the efficiency of public service delivery. Pdf fiscal decentralisation in developing countries. Fiscal decentralization involves shifting some responsibilities for expenditures andor revenues to lower levels of government. Standard models of fiscal federalism suggest many benefits of decentralization in developing economies, and there has been a recent push toward decentralization around the world. As the studies of decentralization in 15 developing countries in this volume clearly show, every case is different.
1538 570 594 1502 835 619 153 423 436 1253 62 1461 647 1048 1240 85 1025 888 1382 1213 670 1208 133 318 872 738 899 793 19 1338 191 589 1448 269 1274 811 1276 1479 145 1259 493 628 505 43 1430