Fiscal Federalism 2014

Making Decentralisation Work

image of Fiscal Federalism 2014

This book offers an overview on recent trends and policies in intergovernmental fiscal relations and sub-central government. Accessible chapters provide: insight into how sub-central governments are managing ongoing consolidation, as well as how fiscal decentralisation fosters economic growth and educational attainment; a balanced account of the virtues and limits of tax competition between jurisdictions; an overview of fiscal equalisation policy; and some fascinating background information about past tax and public service reforms.



Reforming fiscal relations

This chapter explores federal fiscal reforms from the perspective of the political economy of reform. It draws on ten country studies to consider how political, economic and institutional factors shape the design, adoption, and implementation of changes to intergovernmental fiscal frameworks. The chapter first discusses the external conditions most conducive to fiscal federalism reforms. It then goes on to discuss the timing and the scope of reforms. Finally, it assesses the reform process itself and how closely intertwined with policy design it is. The chapter illustrates its observations with the outcomes and examples drawn from the ten case studies and a few other reform episodes. The final section succinctly concludes.



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