Critical Issues of Fiscal Decentralization

Date: February 2007
Type: Papers and Briefs
Subject:
Series: ERD Technical Notes
ISSN: 1655-5236 (print)

Description

Norio Usui writes that as the decentralization process witnessed across Asia and the Pacific region has become an irreversible trend, a growing number of Asian Development Bank projects and technical assistance involve components of delivering services at the subnational level. This paper summarizes key conceptual issues of decentralization, and discusses major routes for decentralization to improve public services and address problems in implementing decentralization. The paper argues that decentralization can work only when it strengthens local accountability and when national and local governments are linked with clear rules. A particular focus of the paper is on fiscal dimensions of accountability between national and local governments, and desirable features of fiscal decentralization.

Contents

  • Foreword
  • Abstract
  • Introduction
  • Accountability in Decentralized Service Delivery
  • Key Issues in Designing and Assessing Fiscal Decentralization
  • Summary and Conclusions
  • References