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The incidence of local government allocations in Tanzania

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    Abstract

    Since 1999, Tanzania has been actively pursuing reforms of the way in which the central government finances local government activities. This paper looks at the current incidence of central government allocations to local authorities in Tanzania through: 1) examining of potential problems with the current financing method, 2) showing large variations between local government allocations, and 3) finding that surprisingly what drives t his distribution of resources maybe substantial pro-wealthy and pro-urban tendencies in the way in which central government officials divide public resources across local government units. Members of parliament have expressed concern about the current incidence of local government resources and the discretion that the central government bureaucracy has over local government allocations. In addition, understanding the current incidence of local government finances is crucial as the Government of Tanzania is in the process of considering the introduction of a formula-based system of intergovernmental block grants. A thorough understanding of the current incidence of central-local government allocations will aid in the design of a sound system of formula-based block grants, and will likely also reveal possible political obstacles that the introduction of a new block grant system may face.

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    File URL: http://icepp.gsu.edu/sites/default/files/documents/icepp/wp/ispwp0311.pdf
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    Bibliographic Info

    Paper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper0311.

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    Length: 24 pages
    Date of creation: 01 May 2003
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    Handle: RePEc:ays:ispwps:paper0311

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    Keywords: local government allocations ; Tanzania;

    This paper has been announced in the following NEP Reports:

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    1. John Joseph Wallis, 1996. "What Determines the Allocation of National Government Grants to the States?," NBER Historical Working Papers 0090, National Bureau of Economic Research, Inc.
    2. Philip J. Grossman, 1987. "A Political Theory of Inter-Governmental Grants," School of Economics Working Papers 1987-06, University of Adelaide, School of Economics.
    3. Jorge Martinez-Vazquez, 2001. "The Impact of Budgets on the Poor: Tax and Benefit," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0110, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    4. Gershon Alperovich, 1984. "The economics of choice in the allocation of intergovernmental grants to local authories," Public Choice, Springer, vol. 44(2), pages 285-296, January.
    5. James Alm & Jorge Martinez-Vazquez, 2002. "On the Use of Budgetary Norms as a Tool for Fiscal Management," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0215, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    6. Francis, Paul & James, Robert, 2003. "Balancing Rural Poverty Reduction and Citizen Participation: The Contradictions of Uganda's Decentralization Program," World Development, Elsevier, vol. 31(2), pages 325-337, February.
    7. Alberto Porto & Pablo Sanguinetti, 2001. "Political Determinants of Intergovernmental Grants: Evidence From Argentina," Economics and Politics, Wiley Blackwell, vol. 13(3), pages 237-256, November.
    8. Kitty Stewart, 1997. "Are Intergovernmental Transfers in Russia Equalizing?," Innocenti Occasional Papers, Economic Policy Series iopeps97/7, UNICEF Innocenti Research Centre.
    9. James Alm & Jameson Boex, 2002. "An Overview of Intergovernmental Fiscal Relations and Subnational Public Finance in Nigeria," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0201, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    10. Steven A. Meyer & Shigeto Naka, 1999. "The Determinants Of Japanese Local-Benefit Seeking," Contemporary Economic Policy, Western Economic Association International, vol. 17(1), pages 87-96, 01.
    11. Turnbull, Geoffrey K & Djoundourian, Salpie S, 1994. " The Median Voter Hypothesis: Evidence from General Purpose Local Governments," Public Choice, Springer, vol. 81(3-4), pages 223-40, December.
    12. Stewart, K., 1997. "Are Intergovernmental Transfers in Russia Equalizing?," Economics Working Papers eco97/22, European University Institute.
    13. Jorge Martinez-Vasquez & Jameson Boex, 2001. "Russia's Transition to a New Federalism," World Bank Publications, The World Bank, number 15248, August.
    14. Epple, Dennis & Romano, Richard E., 1996. "Ends against the middle: Determining public service provision when there are private alternatives," Journal of Public Economics, Elsevier, vol. 62(3), pages 297-325, November.
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    Cited by:
    1. Jameson Boex & Jorge Martinez-Vazquez, 2005. "The Determinants of the Incidence of Intergovernmental Grants: A Survey of the International Experience," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0509, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    2. Emilie CALDEIRA, 2011. "Does the system of allocation of intergovernmental transfers in Senegal eliminate politically motivated targeting?," Working Papers 201105, CERDI.
    3. Eric Otenyo, 2005. "Local Governments Connecting to the Global Economy: Globalization as Catalyst in Governance of East African Cities," Public Organization Review, Springer, vol. 4(4), pages 339-360, November.
    4. Odd-Helge Fjeldstad & Kari Heggstad, 2012. "Local government revenue mobilisation in Anglophone Africa," CMI Working Papers 6, CMI (Chr. Michelsen Institute), Bergen, Norway.

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