The Impact of Fiscal Decentralization: Issues in Theory and Challenges in Practice

Asian Development Bank publication. July 2011

Summary

This publication analyzes the impact of fiscal decentralization and the resultant issues and challenges that countries face in practice. It traces the evolution of fiscal decentralization as a significant and consequential global reform that has made sub national governments' key public sector actors in a majority of countries. This note touches upon its various aspects: incidence and presence in the world; foundation in economics; impact of a list of outcomes, including economic growth, macroeconomic stability, poverty and income distribution, and service delivery and political accountability. It confirms the positive overall impact of decentralized systems, especially when they are well designed and implemented with examples from around the world, including those from Asia and the Pacific.
Contents
* Introduction
* The Causes and Basic Theory of Decentralization
* Evidence of the Impact of Fiscal Decentralization on Economic and Fiscal Variables
* Evidence of the Impact of Fiscal Decentralization on Governance
* Evidence of the Impact of Fiscal Decentralization on Political Outcomes
* Conclusion
* References

URL: http://beta.adb.org/publications/impact-fiscal-decentralization-issues-theory-and-challenges-practice

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