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Emerging Dimensions Of Decentralization Debate In The Age Of Glocalization

  • Sharma, Chanchal Kumar

In 21st Century the development landscape worldwide is constantly being shaped and reshaped by the simultaneous processes of globalization and localization (collectively called Glocalization). In this scenario the subnational political units are emerging as the principle actors in the global economy. With this the location or site of governance is changing. Thus the need is to situate the debate on decentralization in context of glocalization. This chapter is an attempt to understand ‘why’ and ‘how’ of decentralization─ the questions that have perplexed the policy makers and academicians in the age of glocalization. It has been argued that ‘how decentralization is designed’ depends on ‘why decentralization is being carried out’: Drive determines the design. The chapter reflects upon various dimensions related to the design of decentralization and shows that out of the competing approaches none forms an ‘ideal type solution’. Solution, it is agued, is to be found not in antipodes but in an ‘optimal mix of policies implemented with optimal pace’. Each country however must find its own ‘optimality’ given its tradition, geography, economy, income level, social structure and political choices.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6734.

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Date of creation: Jan 2008
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Handle: RePEc:pra:mprapa:6734
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  1. Alesina, Alberto & Spolaore, Enrico, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1027-56, November.
  2. Sharma, Chanchal Kumar, 2005. "When Does decentralization deliver? The Dilemma of Design," MPRA Paper 250, University Library of Munich, Germany, revised Jun 2005.
  3. Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, September.
  4. 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.
  5. Olivier Blanchard & Andrei Shleifer, 2000. "Federalism With and Without Political Centralization. China versus Russia," Harvard Institute of Economic Research Working Papers 1889, Harvard - Institute of Economic Research.
  6. P. Lian & S.-J. Wei, 1998. "To Shock or Not to Shock? Economics and Political Economy of Large-Scale Reforms," Economics and Politics, Wiley Blackwell, vol. 10(2), pages 161-183, 07.
  7. Shah, Anwar, 2004. "Fiscal decentralization in developing and transition economies: progress, problems, and the promise," Policy Research Working Paper Series 3282, The World Bank.
  8. Motohiro Sato, 2002. "Intergovernmental Transfers, Governance Structure and Fiscal Decentralization," The Japanese Economic Review, Japanese Economic Association, vol. 53(1), pages 55-76.
  9. Olson, Mancur, Jr, 1969. "The Principle of "Fiscal Equivalence": The Division of Responsibilities among Different Levels of Government," American Economic Review, American Economic Association, vol. 59(2), pages 479-87, May.
  10. Sharma, Chanchal Kumar, 2004. "Why Decentralization ? The Puzzle of causation," MPRA Paper 196, University Library of Munich, Germany, revised Feb 2005.
  11. Dani Rodrik, 1996. "Understanding Economic Policy Reform," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 9-41, March.
  12. Sharma, Chanchal Kumar, 2004. "Decentralization Dilemma: Measuring the Degree and Evaluating the Outcomes," MPRA Paper 204, University Library of Munich, Germany, revised Nov 2005.
  13. Sharma, Chanchal Kumar, 2003. "The Federal Approach to FiscalDecentralisation: Conceptual Contours for Policy Makers," MPRA Paper 178, University Library of Munich, Germany, revised May 2005.
  14. Parker, Andrew N., 1995. "Decentralization : the way forward for rural development?," Policy Research Working Paper Series 1475, The World Bank.
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