Contents: Preface -- Part I Why decentralization matters -- 1. Fiscal decentralization 101 -- 2. Has decentralization worked? -- Part II Decentralizing expenditures -- 3. Expenditure assignment and management -- 4. Decentralizing and financing infrastructure -- Part III Financing local...

Since the early 1980s fiscal and political decentralization have spread around the world. But decentralization can encourage dangerous opportunistic behavior by state and local officials. Left unrestricted, such opportunism can undermine macroeconomic stability and other objectives. The most...

This paper reviews the literature and evidence on the most appropriate structure of regional and local taxes in developing countries. A good subnational tax system is critical to an effective and sustainable system of intergovernmental fiscal relations - a need that has become increasingly...

Federalism can be a conflict-prevention mechanism, but some political scientists and economists have also endorsed certain features of the system as being likely to establish proper market incentives for economic growth. Most developing countries have ignored economists' recommendations for...

Rapid globalisation (economically, financially, politically, socially and physically) is the order of the day. Limited resources and unlimited claimants. Limited resources and many to decide who will use resources? when? and how? Users scattered all over the world. They need to learn the best...

Over the past few decades, a clear trend has emerged worldwide toward the devolution of spending and, to a lesser extent, revenue-raising responsibilities to state and local levels of government. One view is that the decentralization of spending responsibilities can entail substantial gains in...