Article
Comparative Economic Studies (2006) 48, 100–131. doi:10.1057/palgrave.ces.8100063
The Challenge of Fiscal Decentralisation in Transition Countries
1IS 3-1600, International Monetary Fund, Washington, DC 20431, USA. E-mail: edablanorris@imf.org
†The author wishes to thank John Norregaard and Valerie Mercer-Blackman for sharing an early version of their dataset and participants at the OECD conference on Fiscal Decentralization in Russia for useful comments.
Abstract
This paper examines key aspects of the ongoing decentralisation process in transition economies and identifies areas where the present systems can have potentially adverse impacts on both service delivery and macroeconomic performance. We discuss three critical principles of a sound and efficient decentralised fiscal system – which are then contrasted with actual trends and policies in these countries.
Keywords:
fiscal decentralisation, fiscal reform, transition
JEL Classifications:
E62; H20; H30; H40
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