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Will an asymmetrical system of fiscal decentralisation resolve the conflicts in the republic of Georgia?

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Author Info
Kirn, Tanja
Khokrishvili, Elguja

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Abstract

This paper discusses the problems regarding the decentralisation of a formerly communist country. In Georgia, the first steps towards decentralisation failed, since the transition process led to a power vacuum that escalated in bloody conflicts and secessionist movements. The status of Abkhazia and South Ossetia is still unclear and the intra-state tensions remain unsolved. This may be one of the reasons why the most recent attempts of decentralisation are rather hesitant. It is far from clear whether decentralisation in response to regional tensions would increase instability or political stability. We identify the limited autonomy at the local and regional levels as a major obstacle and challenge for the further reform process.

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Paper provided by Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät in its series Finanzwissenschaftliche Diskussionsbeiträge : Special series. G, Arbeitspapiere des Deutsch-Georgischen Arbeitskreises für Finanz- und Sozialpolitik with number G-9.

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Date of creation: Jan 2008
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Handle: RePEc:pot:fiwidg:09

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Related research
Keywords: decentralisation ; institutional reform ; fiscal equalization ; regional autonomy;

Find related papers by JEL classification:
H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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