Fiscal Decentralisation in Emerging Economies [electronic resource]: Governance Issues /
OECD Development Centre.
Organisation for Economic Co-operation and Development : Development CentreContent Provider
de Mello, Luiz.
Fukasaku, Kiichiro.
Paris : OECD Publishing,
1999.
 This collection of experiences of fiscal decentralisation across a wide range of OECD-Member and non-member economies reveals lessons which are equally of relevance to both groups of countries. A major finding is that fiscal decentralisation is often confused in the latter group of countries with the removal of central-government control over subnational finances. This is a mistake; it may lead to fiscal irresponsibility on the part of local authorities, deteriorating fiscal positions at both levels, and high costs due to duplication of fiscal institutions. The book also finds that insufficient attention has been given to local revenue generation, as opposed to intergovernmental transfers.The issue of fiscal decentralisation in emerging economies is particularly important, because it arises, in part, from a desire to enhance democracy and local accountability. However, the devolution of responsibilities must take place in an atmosphere of transparency, where the local expertise exists to manage budgeting. Serious consideration must be given to revenue sourcing and effective expenditure control. Finally, local spending must match available revenues without becoming an additional strain on central government resources.
Preface by Jean Bonvin and Maria de Fatima Cartaxo -- Introduction and Overview byKiichiro Fukasaku and Luiz R. de Mello, Jr. -- Part One: History, Theory and Political Economy -- Chapter 1. The Changing Role of the State in the Economy: An Historical Perspective by Vito Tanzi -- Chapter 2. Fiscal Federalism and Macroeconomic Governance: For Better or Worse? by Anwar Shah -- Chapter 3. Decentralisation and Macroeconomic Management by Teresa Ter-Minassian -- Chapter 4. Fiscal Federalism in OECD Member Countries by Jon Blondal -- Chapter 5. Strengthening Municipal Financing: Difficulties and New Challenges for Latin America -- Comments by Rakesh Mohan, Kathryn Gordon, and Jose Roberto Afonso -- Part Two: Case Studies. Latin American Perspectives -- Chapter 6. Experiences of Decentralisation and Intergovernmental Fiscal Relations in Latin America by Ernesto Rezk -- Chapter 7. Decentralisation, Intergovernmental Fiscal Relations, and Macroeconomic Goveranace: the Case of Argentina by Ricardo Lopez Murphy and Cynthia Moskovits -- Chapter 8. Fiscal Federalism and Macroeconomic Stability in Brazil: Background and Perspectives by Luiz R. de Mello, Jr. -- Chapter 9. Conditional Transfers to Promote Local Government Participation: The Case of Mexico by Rafael Gamboa -- Comments by Rui Affonso and Fabio Giambiagi -- Part Three: Case Studies. Asian Perspectives -- Chapter 10. Fiscal Decentralisation and Macroeconomic Governance: Asian Perspectives by Kiichira Fukasaku -- Chapter 11. Fiscal Federalism in India: Experience and Future Directions by Parthasarathi Shome -- Chapter 12. Transition to Fiscal Federalism: Market-Oriented Reform and Redefinition of Central-Local Relations in China by Fan Gang -- Comments by Isafas Coelho and Bert Hofman
Bibliographic Level Mode of Issuance: Monograph
 This collection of experiences of fiscal decentralisation across a wide range of OECD-Member and non-member economies reveals lessons which are equally of relevance to both groups of countries. A major finding is that fiscal decentralisation is often confused in the latter group of countries with the removal of central-government control over subnational finances. This is a mistake; it may lead to fiscal irresponsibility on the part of local authorities, deteriorating fiscal positions at both levels, and high costs due to duplication of fiscal institutions. The book also finds that insufficient attention has been given to local revenue generation, as opposed to intergovernmental transfers.The issue of fiscal decentralisation in emerging economies is particularly important, because it arises, in part, from a desire to enhance democracy and local accountability. However, the devolution of responsibilities must take place in an atmosphere of transparency, where the local expertise exists to manage budgeting. Serious consideration must be given to revenue sourcing and effective expenditure control. Finally, local spending must match available revenues without becoming an additional strain on central government resources.
Development
Taxation
Fiscal policy
Intergovernmental fiscal relations
Decentralization in government
Public Finance
Political Science
Law, Politics & Government

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