Developments in administration. The e-journal of the IIAS, IASIA and regional groups, Jan 2, 2017
This paper reviews the issue of how well fiscal decentralization has been implemented and how suc... more This paper reviews the issue of how well fiscal decentralization has been implemented and how successful these projects have been in achieving a new level of local government financial capacity and service delivery. It reviews the most recent research literature that has assessed the success and failure rates of fiscal decentralization in a global and Central and Eastern European context. Overall, the levels of success have not been encouraging with fiscal decentralization having a positive impact. Professor Roy Bahl in a 1999 paper titled “Implementation Rules for Fiscal Decentralization” defined the basic approach to implementing fiscal decentralization and many of these rules have found been the guiding principles for implementing fiscal decentralization. This paper addresses the deficiencies in these rules based on the experiences over the past decades and formulates new rules for implementing fiscal decentralization. The paper concludes that new rules need to be formulated and encourages more dialogue and discussion among researchers and practitioners engaged in implementing fiscal decentralization.
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Papers by Glendal Wright
and (3) enhanced financial incentives. The authors examine how these policies were implemented as well as the impact on local governments service delivery and fiscal capacity. The analyses are based on available data and the application of statistical tests measuring fiscal resources to the population size and other variables of the local government. The study has revealed some significant flaws in Ukrainian decentralization policy implementation. The voluntary approach eventually had to be abandoned for a mandatory approach. The weak progress in inter-municipal cooperation did not establish improved service delivery across a large number of local government units. The financial incentives with greater sharing of taxes did not provide sufficient additional resources to make the units financially sustainable.
Finally, the results of the local government elections held in the amalgamated units did not reveal widespread support for the new units and the decentralization reforms. These issues create significant risks for the final success of the decentralization reform.
and (3) enhanced financial incentives. The authors examine how these policies were implemented as well as the impact on local governments service delivery and fiscal capacity. The analyses are based on available data and the application of statistical tests measuring fiscal resources to the population size and other variables of the local government. The study has revealed some significant flaws in Ukrainian decentralization policy implementation. The voluntary approach eventually had to be abandoned for a mandatory approach. The weak progress in inter-municipal cooperation did not establish improved service delivery across a large number of local government units. The financial incentives with greater sharing of taxes did not provide sufficient additional resources to make the units financially sustainable.
Finally, the results of the local government elections held in the amalgamated units did not reveal widespread support for the new units and the decentralization reforms. These issues create significant risks for the final success of the decentralization reform.