Decentralisation and Poverty Reduction: A Conceptual Framework for the Economic Impact
AbstractThis paper contributes to providing insights into the impact of decentralisation on poverty. It starts out with an overview of which role decentralisation plays in strategies and policies for poverty eradication and derives economic and political impact channels. It concentrates on the economic channel, the reasoning of which is rooted in fiscal federalism theory. It shows that decentralisation cannot only influence poverty by assigning expenditure responsibility to lower levels of government but also by assigning tax-raising power, which has so far been neglected by the literature. The paper concludes by pointing out a number of possible risks for realising the poverty-reducing potential of decentralisation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Public Economics with number 0508006.
Length: 31 pages
Date of creation: 09 Aug 2005
Date of revision:
Note: Type of Document - pdf; pages: 31
Contact details of provider:
Web page: http://188.8.131.52
Local public goods; local revenue; poverty;
Other versions of this item:
- Susan Steiner, 2005. "Decentralisation and Poverty Reduction: A Conceptual Framework for the Economic Impact," GIGA Working Paper Series 03, GIGA German Institute of Global and Area Studies.
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- 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
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.:
- Bird, Richard M., 1993. "Threading the Fiscal Labyrinth: Some Issues in Fiscal Decentralization," National Tax Journal, National Tax Association, vol. 46(2), pages 207-27, June Cita.
- Vito Tanzi, 1998. "Fundamental Determinants of Inequality and the Role of Government," IMF Working Papers 98/178, International Monetary Fund.
- Pauly, Mark V., 1973. "Income redistribution as a local public good," Journal of Public Economics, Elsevier, vol. 2(1), pages 35-58, February.
- Cebula, Richard J., 2002. "Migration and the Tiebout-Tullock Hypothesis Revisited," The Review of Regional Studies, Southern Regional Science Association, vol. 32(1), pages 87-96, Winter/Sp.
- Seabright, Paul, 1996.
"Accountability and decentralisation in government: An incomplete contracts model,"
European Economic Review,
Elsevier, vol. 40(1), pages 61-89, January.
- Seabright, Paul, 1994. "Accountability and Decentralization in Government: An Incomplete Contracts Model," CEPR Discussion Papers 889, C.E.P.R. Discussion Papers.
- Deininger, Klaus & Mpuga, Paul, 2005. "Does Greater Accountability Improve the Quality of Public Service Delivery? Evidence from Uganda," World Development, Elsevier, vol. 33(1), pages 171-191, January.
- Roger H. Gordon & John D. Wilson, 1999. "Tax Structure and Government Behavior: Implications for Tax Policy," NBER Working Papers 7244, National Bureau of Economic Research, Inc.
- Inman, Robert P. & Rubinfeld, Daniel L., 1996. "Designing tax policy in federalist economies: An overview," Journal of Public Economics, Elsevier, vol. 60(3), pages 307-334, June.
- Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank.
- Richard Miller Bird, 1999. "Rethinking Subnational Taxes - A New Look at Tax Assignment," IMF Working Papers 99/165, International Monetary Fund.
- Tullock, Gordon, 1971. "Public Decisions as Public Goods," Journal of Political Economy, University of Chicago Press, vol. 79(4), pages 913-18, July-Aug..
- Gordon, Roger H, 1983.
"An Optimal Taxation Approach to Fiscal Federalism,"
The Quarterly Journal of Economics,
MIT Press, vol. 98(4), pages 567-86, November.
- Roy Bahl, 1999.
"Implementation Rules For Fiscal Decentralization,"
International Center for Public Policy Working Paper Series, at AYSPS, GSU
paper9803, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Roy Bahl, 1999. "Implementation Rules For Fiscal Decentralization," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper9901, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Richard J. Cebula, 2009. "Migration and the Tiebout-Tullock Hypothesis," American Journal of Economics and Sociology, Wiley Blackwell, vol. 68(2), pages 541-551, 04.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Lockwood, Ben, 1998.
"Distributive Politics and the Costs of Centralization,"
CEPR Discussion Papers
2046, C.E.P.R. Discussion Papers.
- Ben Lockwood, 2002. "Distributive Politics and the Costs of Centralization," Review of Economic Studies, Oxford University Press, vol. 69(2), pages 313-337.
- Lockwood, Ben, 2002. "Distributive Politics and the Costs of Centralization," Review of Economic Studies, Wiley Blackwell, vol. 69(2), pages 313-37, April.
- Odd-Helge Fjeldstad, 2003. "What has trust got to do with it? Non-payment of service charges in local authorities in South Africa," CMI Working Papers WP 2003:12, CMI (Chr. Michelsen Institute), Bergen, Norway.
- Galasso, Emanuela & Ravallion, Martin, 2000. "Distributional outcomes of a decentralized welfare program," Policy Research Working Paper Series 2316, The World Bank.
- Sewell, David O, 1996. ""The Dangers of Decentralization" According to Prud'homme: Some Further Aspects," World Bank Research Observer, World Bank Group, vol. 11(1), pages 143-50, February.
- Pranab Bardhan & Dilip Mookherjee, 2000. "Corruption and Decentralization of Infrastructure Delivery in Developing Countries," Boston University - Institute for Economic Development 104, Boston University, Institute for Economic Development.
- Robert E. B. Lucas, 1998. "Internal Migration and Urbanization: Recent Contributions and New Evidence," Boston University - Institute for Economic Development 91, Boston University, Institute for Economic Development.
- Faguet, Jean-Paul, 2001. "Does decentralization increase responsiveness to local needs? - evidence from Bolivia," Policy Research Working Paper Series 2516, The World Bank.
- Sen, Amartya, 1983. "Poor, Relatively Speaking," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 153-69, July.
- Stephan Klasen, 2004.
"In Search of the Holy Grail: How to Achieve Pro-Poor Growth?,"
- Stephan Klasen, 2003. "In Search of The Holy Grail: How to Achieve Pro-Poor Growth ?," Ibero America Institute for Econ. Research (IAI) Discussion Papers 096, Ibero-America Institute for Economic Research.
- Dilip Mookherjee & Pranab K. Bardhan, 2000. "Capture and Governance at Local and National Levels," American Economic Review, American Economic Association, vol. 90(2), pages 135-139, May.
- Burgess, Robin & Stern, Nicholas, 1993. "Taxation and Development," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 762-830, June.
- Alderman, H., 1998. "Social Assistance in Albania. Decentralization and Targeted Transfers," Papers 134, World Bank - Living Standards Measurement.
- Johannes P. Jütting & Céline Kauffmann & Ida McDonnell & Holger Osterrieder & Nicolas Pinaud & Lucia Wegner, 2004. "Decentralisation and Poverty in Developing Countries: Exploring the Impact," OECD Development Centre Working Papers 236, OECD Publishing.
- 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.
- Boadway, Robin & Roberts, Sandra & Shah, Anwar, 1994. "Fiscal federalism : dimensions of tax reform in developing countries," Policy Research Working Paper Series 1385, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.