While there is extensive knowledge about how to design fiscal decentralization policies, considerably less is understood about how a decentralization program should be sequenced and implemented. Countries embarking on decentralization often struggle with decisions about the essential components...

Rule #1 Fiscal decentralization should be viewed as a comprehensive system.Rule #2 Finance follows function.Rule #3There must be a strong central ability to monitor and evaluate decentralization.Rule #4 One intergovernmental system does not fit the urban and the rural sector. Rule #5 Fiscal...

The choice of the"right"fiscal relationship between central, provincial, and local governments depends on how a government weighs the benefits of decentralized economic development policies against the costs of having less effective central fiscal management. Three strong forces justify more...