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Integration, decentralization, taxation, and revenue sharing : good governance, sustainable fiscal policy and poverty reduction as peace-keeping strategies

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  • Hans-Georg Petersen

Abstract

The paper tries to shed some light on the problems of centralization and decentralization within an economic union and the federal member states. Integration and decentralization are not opposite policy strategies but both meaningful if the single public goods and services supplies are analyzed in more detail. Both strategies doubtlessly have advantages, which can be realized if the manifold possibilities are combined in an efficient approach of good governance. Best practice approaches in inter- or supra-national integration, fiscal federalism and taxation do exist and have to be successfully implemented. Obviously such a modern fiscal policy has to be accompanied by an appropriate monetary policy, which in an economic union has to be carried out by an independent central bank as one of the necessary countervailing powers in a democratic setting. A modern fiscal policy strategy efficiently controls budget deficits, which naturally have to be limited to finance reliable public investments. Such strategy has to be safeguarded through modern methods of budgeting and fiscal planning. Modern public management with a clear code of conduct for the government officials ensures corruption free administration.

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Bibliographic Info

Paper provided by Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät in its series Finanzwissenschaftliche Diskussionsbeiträge with number 57.

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Date of creation: Aug 2008
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Handle: RePEc:pot:fiwidp:57

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Related research

Keywords: centralization; decentralization; ethnic differences; fiscal federalism; fiscal planning; good governance; harmonization; integration; nation building; revenue sharing; sustainable fiscal policy; tax reform;

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Cited by:
  1. Ehrke, Jürgen, 2012. "How to assist separatists in breaking up a country... or, rather, not: The role of decentralization and development assistance," MPRA Paper 44045, University Library of Munich, Germany.
  2. Lkhagvadorj, Ariunaa, 2010. "Fiscal Federalism and Decentralization in Mongolia," MPRA Paper 28758, University Library of Munich, Germany, revised Mar 2010.
  3. Ahrens, Joachim & Schweickert, Rainer & Zenker, Juliane, 2011. "Varieties of capitalism, governance and government spending: A cross-section analysis," PFH Forschungspapiere/Research Papers 2011/01, PFH Private University of Applied Sciences, Göttingen.

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