Fiscal decentralization and the efficiency of public service delivery. Pdf on jul 12, 2018, hansjorg blochliger and others published fiscal decentralisation and economic growth find, read and cite all the research you need on researchgate. The country has made important first steps in the decentralization process, but as yet. The achievements made as a result of the implementation of the policy in the two countries and indeed various literature, point to the fact that fiscal decentralisation enhanced the knowledge of local needs and preferences,which were specific to a locality. The papers can be ordered from the institute for a small fee hard copies or downloaded free of charge pdf. The findings suggest that a larger share of decentralized expenditure is associated with a stronger fiscal balance. May 04, 2020 fiscal decentralization is an approach that calls for disbursing the control of finances to various points within a network or operation rather than having all financial control residing at a single point within the network. Fiscal decentralization forms the backbone of myanmars efforts to strengthen public services, encourage development across the country, and secure peace and stability. Fiscal decentralisation overseas development institute. The model assumes, without loss of generality, three levels of government.
Understanding the context of fiscal decentralisation. Fiscal decentralisation in kenya and south africa 77 1 introduction decentralisation is the dispersion of power and responsibilities from a central government to regional or locally managed units. Making the case for rethinking 20 years of decentralisation policy, it provides an evidencebased, critical analysis of the political, economic, administrative, fiscal and institutional determinants of mozambiques approach to. Local government and decentralization pdf download, secrets of mental math arthur benjamin epub download ae94280627 advantages of decentralization,advantages of decentralization. The empirical analysis suggests that fiscal decentralization does impact local polity and this impact is crucial in determining whether fiscal decentralization enhances or diminishes local development. Fiscal decentralization involves shifting some responsibilities for expenditures andor revenues to lower levels of government. Fiscal decentralization financial responsibility is a core component of decentralization. Download pdf oecd fiscal federalism studies fiscal. However, satisfactorily measuring the degree of fiscal decentralisation across countries has appeared to be problematic. Fiscal decentralization in developing countries edited by richard m. Fiscal decentralization and fiscal policy performance. It is intended primarily for policymakers, in this case meaning civil servants and their. Government privatizes or deregulates private functions. If local governments and private organizations are to carry out decentralized functions effectively, they must have an adequate level of revenues either raised locally or transferred from the central government as well as the authority to make.
The enactment of the right of children for free and compulsory. Microlevel evidence from 1 countries article pdf available in economic modelling 62 january 2017 with 16,863. This book documents mexicos decentralization experience as well as conceptualizing its main trends, policies, and options, and brings them into the light of international comparison. James edwin kee, professor of public policy and public administration the george washington university abstract the last decade has seen a renewed interest in the concept of fiscal decentralization or fiscal federalism. Decentralization is a complex phenomenon involving many geographic entities, societal actors and social sectors.
Autonomous regions may be free of any vertical constraint. Fiscal decentralisation covers two interrelated issues. Jrfm free fulltext fiscal decentralisation and economic. Fiscal decentralisation comprises the financial aspects of devolution to regional and local. Fiscal decentralization policies can assume different institutional forms.
In this case, previously concentrated powers to tax and generate revenues are dispersed to other levels of government, e. Pdf different forms of decentralization and their impact on. Saavedracostas in partial fulfillment of the requirements for the degree of doctor in philosophy in the andrew young school of policy studies and the school of public policy. This type of fiscal policy is sometimes used in various business models. The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies. On the measurement and impact of fiscal decentralization. Decentralisation definition of decentralisation by the free.
While measuring decentralization is equally complex, the fiscal flows to, from and among different levels of government can be used assess some aspects of fiscal decentralization. A birds eye view of fiscal decentralisation chapter 2. Fiscal decentralization in a for the asia foundation. This comes after a halfcentury of fiscal centralization in most developed and developing nations. Fiscal decentralisation kenneth davey introduction fiscal decentralisation comprises the financial aspects of devolution to regional and local government. Fiscal decentralization refers to the set of policies designed to increase the revenues or fiscal autonomy of subnational governments. On the theory and practice of fiscal decentralization. A study of the impact of decentralization on access to service delivery a dissertation presented to the academic faculty by pablo a. Oecd fiscal federalism studies fiscal decentralisation and inclusive growth download oecd fiscal federalism studies fiscal decentralisation and inclusive growth ebook pdf or read online books in pdf, epub, and mobi format. The impact of fiscal decentralisation on education and. Making the case for rethinking 20 years of decentralisation policy, it provides an evidencebased, critical analysis of the political, economic, administrative, fiscal and institutional determinants of mozambiques approach to decentralisation.
Trade and development isbn 0 521 64143 8 hardbound 1. This paper examines how decentralization affects governance, in particular how it might increase political competition, improve public accountability, reduce political instability, and impose incentivecompatible limits on government power, but also threaten fiscal sustainability. In retrospect, for many former socialist countries, the combination of efforts aimed at consolidating macroeconomic stabilisation during the early years of the transition, together with the fundamental structural changes in the economy, in some cases strong centrifugal forces, and political and ethnic conflicts, created an extremely complex setting for fiscal decentralisation. Decentralization is a complex and multifaceted concept that spans fiscal, political, and administrative dimensions.
In a unitary state, the head tax does not distort economic decisions. However, this basic economic rationale for decentralization of the public sector is not quite so simple and compelling as it appears. An increase of transfers from the central government, the creation of new subnational taxes, and the delegation of tax authority. As emphasized by bird 2000, however, measurement is surprisingly difficult. Fiscal decentralisation is considered to be an important policy weapon to achieve economic efficiency and to ensure effective governance through financial autonomy of provincial governments. Some of the more recent literature provides, first, a. This article uses panel data from 94 lgas in tanzania mainland over the period 200506 to 200910, to examine the impact of fiscal decentralization on education spending and provision of quality education. Pdf transformation of the mechanism of responsibility redistribution between central and subcentral government resulted in expansion. Fiscal decentralisation has attracted great attention from governments, practitioners, and international institutions with the aims of enhancing economic growth in the last 5 decades.
Iese is an institution committed political economy of. This paper examines the theory behind fiscal decentralization and suggests. This trend could be as influential for good governance and for improving. First we will look at the main features of fiscal decentralisation in south africa and assess its impact on the major components of social expenditure. Decentralization or decentralisation see spelling differences is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group. The impact of fiscal decentralization on provision of quality. The impact of fiscal decentralization on accountability. Decentralization or decentralisation see spelling differences is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group concepts of decentralization have been applied to group dynamics and management science in private businesses and organizations.
If my neighbour keeps a beady eye on public spending, i can. The regional and local units act as agents for the central government and execute certain functions on its behalf. Decentralization in government developing countries. Another important reason for the examination of fiscal decentralization in indian context is the statutory recognition of the third tier of fiscal structure and evolution of a. Pdf assessment of fiscal decentralization influence on social. For the problem of decentralizing government activities, mobility across regions is a critical factor. Jul 11, 2014 the quick research by the committee revealed that the governments of kenya and south africa have been implementing fiscal decentralisation. Measuring fiscal decentralisation concepts and policies when trying to measure fiscal decentralisation, the oecd network on fiscal relations across government levels has made significant progress in the last years, especially on tax autonomy of subcentral governments. Click download or read online button to oecd fiscal federalism studies fiscal decentralisation and inclusive growth book pdf for free now.
Using data for 80 countries, huther and shah 1996 also found a positive correlation between fiscal decentralization and economic growth. Our central interest in this paper is to examine how fiscal decentralisation is articulated to address the leading social disparities in south africa. July 2005 understanding fiscal decentralisation in south africa. This paper explores the impact of fiscal decentralization on fiscal policy performance in a large sample of advanced and developing economies. The oecd fiscal decentralisation database provides comparative information on the following indicators analysed by level of government sector federal or central, including social security, stateregional and local, for oecd member countries between 1965 and 2018. With the german government having evaluated its own decentralization projects in countries. In addition, the link between fiscal decentralisation and economic growth across provinces. 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. The challenge of fiscal decentralisation in transition. Different forms of decentralization and their impact on government performance. Fiscal decentralisation and inclusive growth oecd fiscal federalism studies fiscal federalism 2016 making decentralisation work contents executive summary chapter 1. Achievements and challenges of fiscal decentralization. The level of fiscal decentralization is defined as the spending by subnational governments as a fraction of total government spending.
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