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Implementation Rules For Fiscal Decentralization

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Author Info
Roy Bahl () (Andrew Young School of Policy Studies, Georgia State University)

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Abstract

Rule #1 Fiscal decentralization should be viewed as a comprehensive system.Rule #2 Finance follows function.Rule #3There must be a strong central ability to monitor and evaluate decentralization.Rule #4 One intergovernmental system does not fit the urban and the rural sector. Rule #5 Fiscal decentralization requires significant local government taxing powers.Rule #6 Central governments must keep the fiscal decentralization rules that they make .Rule #7 Keep it simple. Rule #8 The design of the intergovernmental transfer system should match the objectives of the decentralization reform .Rule #9 Fiscal decentralization should consider all three levels of government. Rule #10 Impose a hard budget constraint. Rule #11 Recognize that intergovernmental systems are always in transition and plan for this. Rule #12 There must be a champion for fiscal decentralization .

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Paper provided by International Studies Program, Andrew Young School of Policy Studies, Georgia State University in its series International Studies Program Working Paper Series, at AYSPS, GSU with number paper9901.

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Length: 34 pages
Date of creation: 01 Jan 1999
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Handle: RePEc:ays:ispwps:paper9901

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Related research
Keywords: Implementation Rules; Fiscal Decentralization;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bahl, Roy W. & Wallich, Christine, 1992. "Intergovernmental fiscal relations in China," Policy Research Working Paper Series 863, The World Bank. [Downloadable!]
  2. Richard Bird & Pierre Gendron, 1998. "Dual VATs and Cross-Border Trade: Two Problems, One Solution?," International Tax and Public Finance, Springer, vol. 5(3), pages 429-442, July. [Downloadable!] (restricted)
  3. Dillinger, William, 1991. "Urban property tax reform : guidelines and recommendations," Policy Research Working Paper Series 710, The World Bank. [Downloadable!]
  4. Prud'homme, Remy, 1995. "The Dangers of Decentralization," World Bank Research Observer, Oxford University Press, vol. 10(2), pages 201-20, August.
  5. Jorge Martinez-Vazquez & Robert McNab, 1997. "Fiscal Decentralization, Economic Growth, and Democratic Governance," International Studies Program Working Paper Series, at AYSPS, GSU paper9707, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Sharma, Chanchal Kumar, 2004. "Why Decentralization ? The Puzzle of causation," MPRA Paper 196, University Library of Munich, Germany, revised Feb 2005. [Downloadable!]
  2. Shah, Anwar & Thompson, Theresa, 2004. "Implementing decentralized local governance: a treacherous road with potholes, detours, and road closures," Policy Research Working Paper Series 3353, The World Bank. [Downloadable!]
  3. Bagaka, Obuya, 2008. "Fiscal Decentralization in Kenya: The Constituency Development Fund and the Growth of Government," MPRA Paper 11813, University Library of Munich, Germany. [Downloadable!]
  4. Jameson Boex & Jorge Martinez-Vazquez, 2005. "The Determinants of the Incidence of Intergovernmental Grants: A Survey of the International Experience," International Studies Program Working Paper Series, at AYSPS, GSU paper0509, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  5. Jorge Martinez-Vazquez & Robert McNab, 2001. "Fiscal Decentralization and Economic Growth," International Studies Program Working Paper Series, at AYSPS, GSU paper0101, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
    Other versions:
  6. Richard M. Bird, 2003. "Managing the Reform Process," International Tax Program Papers 0301, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto, revised May 2003. [Downloadable!]
  7. Jameson Boex & Jorge Martinez-Vazquez, 2003. "Local Government Reform in Tanzania: Considerations for the Development of a System of Formula-Based Grants," International Studies Program Working Paper Series, at AYSPS, GSU paper0305, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  8. Benno Torgler, 2007. "The Impact of Direct Democracy and Local Autonomy on Tax Morale in Switzerland," Working Papers 06-2007, Institute of Local Public Finance. [Downloadable!]
  9. Benno Torgler & Jan Werner, 2005. "Tax Morale and Fiscal Autonomy: Evidence from Germany," Working Papers 03-2005, Institute of Local Public Finance. [Downloadable!]
  10. James Alm, Robert H. Aten, Roy Bahl, 2001. "Can Indonesia Decentralise Successfully? Plans, Problems And Prospects," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 37(1), pages 83-102, April. [Downloadable!] (restricted)
  11. Meloche, Jean-Philippe & Vaillancourt, Francois & Yilmaz, Serdar, 2004. "Decentralization or fiscal autonomy ? What does really matter ? effects on growth and public sector size in European transition countries," Policy Research Working Paper Series 3254, The World Bank. [Downloadable!]
  12. Richard M. Bird & Enid Slack, 2006. "The Role of the Property Tax in Financing Rural Local Governments in Developing Countries," International Tax Program Papers 0608, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto. [Downloadable!]
  13. Susan Steiner, 2005. "Decentralisation and Poverty Reduction: A Conceptual Framework for the Economic Impact," Public Economics 0508006, EconWPA. [Downloadable!]
    Other versions:
  14. Ebel, Robert D. & Yilmaz, Serdar, 2002. "On the measurement and impact of fiscal decentralization," Policy Research Working Paper Series 2809, The World Bank. [Downloadable!]
  15. Benno Torgler & Friedrich Schneider & Christoph A. Schaltegger, 2009. "Local Autonomy, Tax Morale and the Shadow Economy," School of Economics and Finance Discussion Papers and Working Papers Series 243, School of Economics and Finance, Queensland University of Technology. [Downloadable!]
    Other versions:
  16. Manof Shresta, 2002. "An Overview of Intergovernmental Fiscal Relations in Nepal," International Studies Program Working Paper Series, at AYSPS, GSU paper0205, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  17. Kelly Edmiston, 2000. "Fostering Subnational Autonomy and Accountability in Decentralized Developing Countries: Lessons from the Papua New Guinea Experience," International Studies Program Working Paper Series, at AYSPS, GSU paper0005, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  18. Kim, Aehyung, 2008. "Decentralization and the provision of public services : framework and implementation," Policy Research Working Paper Series 4503, The World Bank. [Downloadable!]
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