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Intergovernmental Loans: Their Fit into a Transfer System

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  • Dana Weist

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Abstract

Governments decentralize for various political and economic reasons. It can be a means to move decision making closer to people, to enhance the efficiency and responsiveness of service delivery, and to make tax systems more productive. In some countries, it may also promote national cohesion (e.g., Indonesia). Done well, decentralization can lead to all of the benefits promised by a multi-tiered intergovernmental system: better public services, enhanced local accountability, and a potential tool for poverty alleviation. But if decentralization is done badly, it can lead to macroeconomic instability, deterioration in service delivery, corruption and collapse of the safety net.

Suggested Citation

  • Dana Weist, 2004. "Intergovernmental Loans: Their Fit into a Transfer System," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0422, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  • Handle: RePEc:ays:ispwps:paper0422
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    File URL: http://icepp.gsu.edu/files/2015/03/ispwp0422.pdf
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    Keywords

    Intergovernmental Loans; Transfer System; dezentralization;

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