Nearly all countries worldwide are now experimenting with decentralization. Their motivation are diverse. Many countries are decentralizing because they believe this can help stimulate economic growth or reduce rural poverty, goals central government interventions have failed to achieve. Some countries see it as a way to strengthen civil society and deepen democracy. Some perceive it as a way to off-load expensive responsibilities onto lower level governments. Thus, decentralization is seen as a solution to many different kinds of problems. This report examines the origins and implications decentralization from a political economy perspective, with a focus on its promise and limitations. It explores why countries have often chosen not to decentralize, even when evidence suggests that doing so would be in the interests of the government. It seeks to explain why since the early 1980s many countries have undertaken some form of decentralization. This report also evaluates the evidence to understand where decentralization has considerable promise and where it does not. It identifies conditions needed for decentralization to succeed. It identifies the ways in which decentralization can promote rural development. And it names the goals which decentralization will probably not help achieve.

This book examines the impacts of fiscal decentralization reforms on the efficiency of local governments in Central and Eastern European (CEE) countries. By offering a comparative perspective and by applying econometric methods and regression models, it analyses various reform trajectories and their effects on individual CEE countries. Furthermore, the book discusses input and output indicators for evaluating the efficiency of municipalities. Readers will learn about the common features of these countries, the impact of path dependence, and future prospects for decentralization reforms. In closing, the book discusses modern management and administration methods, opportunities for cooperation between municipalities, co-creative service delivery, and other measures that could improve the efficiency of public service provision.

Is decentralisation good for development? This book explains when the answer is 'Yes' and when it is 'No'. It shows how decentralisation can be designed to drive development forward, and focuses on the institutional incentives that can strengthen democracy, boost economies, and improve public sector performance.

This comprehensive volume provides uniquely diverse insights into various aspects of decentralization and development from both developed and developing countries, with special reference to Sri Lanka. For a quarter century, Sri Lanka was battered by its prolonged civil war, which ended in 2009, but has now achieved relative peace and stability. Having developed rapidly, Sri Lanka offers a classic example for developing countries. There is, however, a strong need, particularly in the context of postwar conflict, to formulate policies for reconciliation, peace building, and development at all levels—local, provincial, and national. Decentralization itself is not a new subject; however, how to devolve power to local administrative levels within a unitary system and how to link the devolved power to make local administrative systems more conducive to development and provide better services for citizens are challenging tasks in many countries. Taking into account the developmental, governance, and conciliatory needs and the sensitivity of central–local relations, this volume critically examines the local government systems in Sri Lanka. It also proposes a viable, effective and autonomous local-level administrative unit based, which draws on experiences from Japan and other countries, and identifies the role and functions of such a unit. The book presents commissioned papers from a three-year research project undertaken by internationally respected experts with financial support by the Japan Society for the Promotion of Science (JSPS) under a Grant-in-Aid for Scientific Research.

This book draws on experiences in developing countries to bridge the gap between the conventional textbook treatment of fiscal decentralization and the actual practice of subnational government finance. The extensive literature about the theory and practice is surveyed and longstanding problems and new questions are addressed. It focuses on the key choices that must be made in decentralizing, on how economic and political factors shape the choices that countries make, and on how, by paying more attention to the need for a more comprehensive approach and the critical connections between different components of decentralization reform, everyone involved might get more for their money.

Reviews recent lessons about decentralized governance and implications for future development programs and policies.

Comparing Fiscal Federalism investigates intergovernmental financial relations and the current de jure and de facto allocation of financial and fiscal powers in compound states from a comparative and interdisciplinary perspective. The volume combines theoretical approaches with case studies and involves scholars from various disciplines, in order to provide a comprehensive analysis of different approaches, developments and trends. This includes outlining fiscal federalism’s basic principles and overall frameworks, investigating current constitutional/legislative settings and how financial systems function, as well as zooming in on a selection of emerging issues in financial and fiscal relations. The single chapters are based on comparative investigations under the umbrella of a broad definition of fiscal federalism that includes all varieties of federal systems.