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Will an asymmetrical system of fiscal decentralisation resolve the conflicts in the republic of Georgia?

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  • Kirn, Tanja
  • Khokrishvili, Elguja

Abstract

This paper discusses the problems regarding the decentralisation of a formerly communist country. In Georgia, the first steps towards decentralisation failed, since the transition process led to a power vacuum that escalated in bloody conflicts and secessionist movements. The status of Abkhazia and South Ossetia is still unclear and the intra-state tensions remain unsolved. This may be one of the reasons why the most recent attempts of decentralisation are rather hesitant. It is far from clear whether decentralisation in response to regional tensions would increase instability or political stability. We identify the limited autonomy at the local and regional levels as a major obstacle and challenge for the further reform process.

Suggested Citation

  • Kirn, Tanja & Khokrishvili, Elguja, 2008. "Will an asymmetrical system of fiscal decentralisation resolve the conflicts in the republic of Georgia?," Finanzwissenschaftliche Diskussionsbeiträge : Special series. G, Arbeitspapiere des Deutsch-Georgischen Arbeitskreises für Finanz- und Sozialpolitik G-9, Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät.
  • Handle: RePEc:pot:fiwidg:09
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    File URL: http://nbn-resolving.de/urn:nbn:de:kobv:517-opus-18795
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    Keywords

    decentralisation ; institutional reform ; fiscal equalization ; regional autonomy;

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • 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
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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