Implementation Rules For Fiscal Decentralization

Roy W. Bahl ()

International Studies Program Working Paper Series, at AYSPS, GSU from International Studies Program, Andrew Young School of Policy Studies, Georgia State University

Abstract: 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 decentralization requires significant local government taxing powers.Rule #6 Central governments must keep the fiscal decentralization rules that they make .Rule #7 Keep it simple. Rule #8 The design of the intergovernmental transfer system should match the objectives of the decentralization reform .Rule #9 Fiscal decentralization should consider all three levels of government. Rule #10 Impose a hard budget constraint. Rule #11 Recognize that intergovernmental systems are always in transition and plan for this. Rule #12 There must be a champion for fiscal decentralization .

Keywords: Implementation Rules; Fiscal Decentralization (search for similar items in EconPapers)
Date: 1999-01-01
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Working Paper: Implementation Rules For Fiscal Decentralization (1999)
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