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Decentralisation and Poverty Reduction: A Conceptual Framework for the Economic Impact

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  • Susan Steiner

    (Deutsches Übersee-Institut)

Abstract

This 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.

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File URL: http://128.118.178.162/eps/pe/papers/0508/0508006.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Public Economics with number 0508006.

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Length: 31 pages
Date of creation: 09 Aug 2005
Date of revision:
Handle: RePEc:wpa:wuwppe:0508006

Note: Type of Document - pdf; pages: 31
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Web page: http://128.118.178.162

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Keywords: Local public goods; local revenue; poverty;

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