A weakness of decentralization and overall tax reforms in Latin America is the lack of attention to adequate taxation at the subnational government. A reliance on shared taxes with extensive earmarking leads to weak subnational accountability and soft budget constraints. The paper explores the...

This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to...

Intergovernmental equalization grants have been described as “the glue that holds a nation together.” Getting the grants system right is critical to countries as they decentralize. This paper illustrates general principles with an example based on Indonesia in 2000. A general grant should be...

Las metrópolis, amplias zonas densamente pobladas en las que variados entes territoriales gravitan sobre un núcleo metropolitano, son reconocidas como las formas territoriales dominantes al comando de la economía global y, sin embargo, no gozan de reconocimiento político. Los niveles...

Intergovernmental equalization grants have been described as “the glue that holds a nation together.” Getting the grants system right is critical to countries as they decentralize. This paper illustrates general principles with an example based on Indonesia in 2000. A general grant should be...

Intergovernmental equalization grants have been described as the glue that holds a nation together. Getting the grants system right is critical to countries as they decentralize. This paper illustrates general principles with an example based on Indonesia in 2000. A general grant should be used...

This paper assesses how decentralization can contribute, if proper political and fiscal institutions are present, to improving service delivery in Asia. In other words, decentralization is an opportunity and a challenge at the same time. The paper presents the salient characteristics of...