2005 OECD Economic Surveys: Japan 2005

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OECD's 2005 Economic Survey of Japan analyses whether Japan can sustain its economic expansion. It carefully looks at Japan's fiscal problems and related to that, the relationship between different levels of governments. It also reviews the problem of Japan's shrinking working-age population. The special report examines how Japan gets the most out of public sector decentralisation.

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Getting the Most Out of Public Sector Decentralisation

This chapter discusses policies to improve fiscal relations between levels of government so as to better meet the needs of citizens while increasing the fiscal discipline of local authorities. It analyses a number of problems, including regulations that limit innovation and accountability at the local level, the inefficient system of intergovernmental grants and the complex structure of local taxes. The chapter concludes that it is essential to improve local governments’ ability and incentives...

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