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Intergovernmental Fiscal Transfers in Developing Countries

Case Studies from the Commonwealth

image of Intergovernmental Fiscal Transfers in Developing Countries

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Introduction

Increasingly, it is being realised that provision of certain services such as health, education, water and sanitation can be more suitably provided by subnational governments, since they are closer to local preferences. Over the last quarter of century, more than 75 countries have attempted to decentralise the responsibilities of national government to the lower tiers of government (Junaid and Shantayanan 2005: 1). Motivation for decentralisation varies across countries and includes political1 and economic transformation, transition to democracy, or a response to ethnic or regional conflict.

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