Sequencing Fiscal Decentralization
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Sequencing Fiscal Decentralization
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Author : Roy Bahl
language : en
Publisher:
Release Date : 2012
Sequencing Fiscal Decentralization written by Roy Bahl and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012 with categories.
While there is extensive knowledge about how to design fiscal decentralization policies, considerably less is understood about how a decentralization program should be sequenced and implemented. Countries embarking on decentralization often struggle with decisions about the essential components of decentralization, including the order of an introduction of decentralization policies, the number of years necessary to bring a full program on line, and the components of the transition strategy. The authors argue that the sequencing of decentralization policies is an important determinant of its success. The consequences of a poorly sequenced decentralization program can range from minor delays and complications to ineffectiveness and subsequent failing support of decentralization efforts, macroeconomic instability, and fundamental failure in public sector delivery. At a minimum, the strategy of "making it up as we go" will not lead to the same structure of decentralization as will a planned strategy. The paper raises two questions: First, is there an optimal sequencing for decentralization policies and implementation? The answer is that there is, and that following these sequencing rules can reduce the costs and risks of implementing fiscal decentralization. Second, to what extent do countries follow these optimal sequencing rules? The answer is, in general, they do not. The gap between theory and practice is a result of the complexity of sequencing design, which discourages fiscal planners from implementing the full process. In addition, sequencing requires a sustained discipline and vision for its implementation, as well as overcoming pressures from political actors, especially in developing countries.
Sequencing Fiscal Decentralization
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Author : Roy W. Bahl
language : en
Publisher:
Release Date : 2016
Sequencing Fiscal Decentralization written by Roy W. Bahl and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with categories.
While there is extensive knowledge about how to design fiscal decentralization policies, considerably less is understood about how a decentralization program should be sequenced and implemented. Countries embarking on decentralization often struggle with decisions about the essential components of decentralization, including the order of an introduction of decentralization policies, the number of years necessary to bring a full program on line, and the components of the transition strategy.The authors argue that the sequencing of decentralization policies is an important determinant of its success. The consequences of a poorly sequenced decentralization program can range from minor delays and complications to ineffectiveness and subsequent failing support of decentralization efforts, macroeconomic instability, and fundamental failure in public sector delivery. At a minimum, the strategy of quot;making it up as we goquot; will not lead to the same structure of decentralization as will a planned strategy.The paper raises two questions: First, is there an optimal sequencing for decentralization policies and implementation? The answer is that there is, and that following these sequencing rules can reduce the costs and risks of implementing fiscal decentralization. Second, to what extent do countries follow these optimal sequencing rules? The answer is, in general, they do not. The gap between theory and practice is a result of the complexity of sequencing design, which discourages fiscal planners from implementing the full process. In addition, sequencing requires a sustained discipline and vision for its implementation, as well as overcoming pressures from political actors, especially in developing countries.
Making Fiscal Decentralization Work
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Author : Ms.Annalisa Fedelino
language : en
Publisher: International Monetary Fund
Release Date : 2010-10-06
Making Fiscal Decentralization Work written by Ms.Annalisa Fedelino and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010-10-06 with Business & Economics categories.
The question of what makes fiscal decentralization work is faced by many policymakers around the world. This book draws on both the relevant literature and policy and technical advice provided by the IMF to a wide range of member countries, and discusses the key factors that help make decentralization sustainable, efficient, and equitable from a macroeconomic perspective. It focuses on institutional reforms (in the revenue and expenditure assignments to different levels of government, the design of intergovernmental transfers, and public financial management systems) that are suited to different countries circumstances, and their appropriate sequencing.
Indonesia
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Author : Mr.Ehtisham Ahmad
language : en
Publisher: INTERNATIONAL MONETARY FUND
Release Date : 2002-08-01
Indonesia written by Mr.Ehtisham Ahmad and has been published by INTERNATIONAL MONETARY FUND this book supported file pdf, txt, epub, kindle and other format this book has been release on 2002-08-01 with Business & Economics categories.
The process of decentralization in Indonesia was initiated after a long period of autocratic rule. Despite the political imperatives, there is a need to carefully sequence the fiscal decentralization to ensure that financing follows the assignment of functions. The functions should be commensurate with the capacity to provide public services. The paper argues for the proper sequencing to avoid jeopardizing macroeconomic stability or the effective delivery of public services.
Fiscal Decentralization And Local Finance In Developing Countries
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Author : Roy Bahl
language : en
Publisher: Edward Elgar Publishing
Release Date : 2018-03-30
Fiscal Decentralization And Local Finance In Developing Countries written by Roy Bahl and has been published by Edward Elgar Publishing this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018-03-30 with Business & Economics categories.
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. The extensive literature about the theory and practice is surveyed and longstanding problems and new questions are addressed. It focuses on the key choices that must be made in decentralizing, on how economic and political factors shape the choices that countries make, and on how, by paying more attention to the need for a more comprehensive approach and the critical connections between different components of decentralization reform, everyone involved might get more for their money.
Fiscal Decentralization Improves Social Outcomes When Countries Have Good Governance
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Author : Ryota Nakatani
language : en
Publisher: International Monetary Fund
Release Date : 2022-06-03
Fiscal Decentralization Improves Social Outcomes When Countries Have Good Governance written by Ryota Nakatani and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022-06-03 with Business & Economics categories.
Does fiscal decentralization improve health and educational outcomes? Does this improvement depend on the quality of governance? How do fiscal decentralization and governance interact? We answer these questions through an instrumental variable Tobit analysis of cross-country panel data. We find negative effects of fiscal decentralization on health outcomes, which however are more than offset by better governance. Education expenditure decentralization to subnational governments enhances educational outcomes. We conclude that countries can only reap the benefits from decentralization when the quality of their governance arrangements exceeds a certain threshold. We also find that sequencing and staging of decentralization matter. Countries should improve government effectiveness and control of corruption first to maximize benefits of fiscal decentralization.
Fiscal Decentralization And The Efficiency Of Public Service Delivery
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Author : Moussé Sow
language : en
Publisher: International Monetary Fund
Release Date : 2015-03-17
Fiscal Decentralization And The Efficiency Of Public Service Delivery written by Moussé Sow and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015-03-17 with Business & Economics categories.
This paper explores the impact of fiscal decentralization on the efficiency of public service delivery. It uses a stochastic frontier method to estimate time-varying efficiency coefficients and analyzes the impact of fiscal decentralization on those efficiency coefficients. The findings indicate that fiscal decentralization can improve the efficiency of public service delivery but only under specific conditions. First, the decentralization process requires adequate political and institutional environments. Second, a sufficient degree of expenditure decentralization seems necessary to obtain favorable outcomes. Third, decentralization of expenditure needs to be accompanied by sufficient decentralization of revenue. Absent those conditions, fiscal decentralization can worsen the efficiency of public service delivery.
Fiscal Decentralization In Developing And Transition Economies
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Author : Anwar Shah
language : en
Publisher: World Bank Publications
Release Date : 2004
Fiscal Decentralization In Developing And Transition Economies written by Anwar Shah and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 2004 with Decentralization in government categories.
Macro Policy Lessons For A Sound Design Of Fiscal Decentralization Background Studies
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Author : International Monetary Fund. Fiscal Affairs Dept.
language : en
Publisher: International Monetary Fund
Release Date : 2009-07-27
Macro Policy Lessons For A Sound Design Of Fiscal Decentralization Background Studies written by International Monetary Fund. Fiscal Affairs Dept. and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2009-07-27 with Business & Economics categories.
This paper provides background to the Board paper on Macro Policy Lessons for a Sound Design of Fiscal Decentralization. It summarizes the findings and recommendations of the Fiscal Affairs Department (FAD) for ten countries to which it provided advice on fiscal decentralization. The selected countries (Bolivia, People’s Republic of China, Colombia, Democratic Republic of Congo, Indonesia, Kosovo, Liberia, FYR Macedonia, Mexico, and Nigeria) represent different regions, varying institutional arrangements, and diverse stages of the decentralization process.
Applying A Simple Measure Of Good Governance To The Debate On Fiscal Decentralization
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Author : Jeff Huther
language : en
Publisher: World Bank Publications
Release Date : 1998
Applying A Simple Measure Of Good Governance To The Debate On Fiscal Decentralization written by Jeff Huther and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 1998 with Decentralization in government categories.
March 1998 Applying an index for the quality of governance reveals a surprisingly strong positive correlation between fiscal decentralization and quality of governance. Debates about the appropriate role, policies, and institutions of the state are often hampered by the lack of a definition for good government. To provide a quantifiable measure of good government, Huther and Shah develop an index for the quality of governance for a sample of 80 countries. They apply the index to the debate on the appropriate level of fiscal decentralization. In measuring the quality of governance, the authors develop indices for the government's ability to: * Ensure political transparency and a voice for all citizens (the citizen participation index measures political freedom and political stability). * Provide effective public services efficiently (the government orientation index measures judicial and bureaucratic efficiency and the absence of corruption). * Promote the health and well-being of its citizens (the social development index measures human development and equitable distribution of income). * Create a favorable climate for stable economic growth (the economic management index measures outward orientation, independence of the central bank, and an inverted debt-to-GDP ratio). In relating the index of governance quality to degree of fiscal decentralization for the 80 countries, Huther and Shah are not surprised to find a positive relationship between fiscal decentralization and quality of governance. But the strength of the correlation is surprising. This paper-a product of Country Evaluation and Regional Relations Division, Operations Evaluation Department-is part of a larger effort in the department to examine the role of the authorizing environment in public sector performance.