IDEAS home Printed from https://ideas.repec.org/a/oec/govkaa/5k8zpd5cczd8.html
   My bibliography  Save this article

Economic theory and four centuries of fiscal decentralisation in the Netherlands

Author

Listed:
  • Frits Bos

Abstract

The history of the Netherlands reveals major shifts from centralisation of government tasks towards decentralisation and vice versa. In the 17th century, the Republic of United Provinces was the first federal state in modern history. Many transformations later, the Kingdom of the Netherlands became a big centralised welfare state. Since the 1980s, a reverse development has started: the welfare state is being downsized and decentralised. This article describes and discusses this evolution in view of a broad spectrum of economic theories. Four conclusions are drawn. First, the major changes in Dutch fiscal decentralisation arrangements were introduced as policies to overcome a severe economic and political crisis. Second, many other factors – like the increase in communication, mobility, population density, urbanisation and the role of government – also necessitated changes. Third, in order to ensure efficient and financially solid government, the accountability and transparency of central and local government and their interrelationships have been improved substantially. Fourth, current arrangements are not optimal and should be changed. For example, Dutch municipalities should increase further in scale, and the role of Dutch provinces should be reconsidered.

Suggested Citation

  • Frits Bos, 2013. "Economic theory and four centuries of fiscal decentralisation in the Netherlands," OECD Journal on Budgeting, OECD Publishing, vol. 12(2), pages 9-60.
  • Handle: RePEc:oec:govkaa:5k8zpd5cczd8
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1787/budget-12-5k8zpd5cczd8
    Download Restriction: Full text available to READ online. PDF download available to OECD iLibrary subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vermeulen, W. & Allers, Maarten, 2014. "Fiscal equalization, capitalization and the flypaper effect," Research Report 14023-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    2. Allers, Maarten A. & Vermeulen, Wouter, 2016. "Capitalization of equalizing grants and the flypaper effect," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 115-129.
    3. Wouter Vermeulen & Maarten Allers, 2013. "Fiscal Equalization and Capitalization: Evidence from a Policy Reform," CPB Discussion Paper 245, CPB Netherlands Bureau for Economic Policy Analysis.
    4. repec:dgr:rugsom:14023-eef is not listed on IDEAS

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:govkaa:5k8zpd5cczd8. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/oecddfr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.