Fiscal Decentralization Improves Social Outcomes When Countries Have Good Governance PDF Download
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Author: Ryota Nakatani
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 29
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Book Description
Does fiscal decentralization improve health and educational outcomes? Does this improvement depend on the quality of governance? How do fiscal decentralization and governance interact? We answer these questions through an instrumental variable Tobit analysis of cross-country panel data. We find negative effects of fiscal decentralization on health outcomes, which however are more than offset by better governance. Education expenditure decentralization to subnational governments enhances educational outcomes. We conclude that countries can only reap the benefits from decentralization when the quality of their governance arrangements exceeds a certain threshold. We also find that sequencing and staging of decentralization matter. Countries should improve government effectiveness and control of corruption first to maximize benefits of fiscal decentralization.
Author: Ryota Nakatani
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 29
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Book Description
Does fiscal decentralization improve health and educational outcomes? Does this improvement depend on the quality of governance? How do fiscal decentralization and governance interact? We answer these questions through an instrumental variable Tobit analysis of cross-country panel data. We find negative effects of fiscal decentralization on health outcomes, which however are more than offset by better governance. Education expenditure decentralization to subnational governments enhances educational outcomes. We conclude that countries can only reap the benefits from decentralization when the quality of their governance arrangements exceeds a certain threshold. We also find that sequencing and staging of decentralization matter. Countries should improve government effectiveness and control of corruption first to maximize benefits of fiscal decentralization.
Author: David A. Robalino
Publisher: World Bank Publications
ISBN:
Category : Descentralizacion
Languages : en
Pages : 20
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Book Description
Decentralization of fiscal responsibilities has emerged as a primary objective on the agendas of national governments, and international organizations alike. Yet there is little empirical evidence on the potential benefits of this intervention. The authors fill in some quantitative evidence. Using panel data on infant mortality rates, GDP per capita, and the share of public expenditures managed by local governments, they find greater fiscal decentralization is consistently associated with lower mortality rates. The results suggest that the benefits of fiscal decentralization are particularly important for poor countries. They suggest also that the positive effects of fiscal decentralization on infant mortality, are greater in institutional environments that promote political rights. Fiscal decentralization also appears to be a mechanism for improving health outcomes in environments with a high level of ethno-linguistic fractionalization, however, the benefits from fiscal decentralization tend to be smaller.
Author: Jeff Huther
Publisher: World Bank Publications
ISBN:
Category : Decentralization in government
Languages : en
Pages : 37
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Book Description
March 1998 Applying an index for the quality of governance reveals a surprisingly strong positive correlation between fiscal decentralization and quality of governance. Debates about the appropriate role, policies, and institutions of the state are often hampered by the lack of a definition for good government. To provide a quantifiable measure of good government, Huther and Shah develop an index for the quality of governance for a sample of 80 countries. They apply the index to the debate on the appropriate level of fiscal decentralization. In measuring the quality of governance, the authors develop indices for the government's ability to: * Ensure political transparency and a voice for all citizens (the citizen participation index measures political freedom and political stability). * Provide effective public services efficiently (the government orientation index measures judicial and bureaucratic efficiency and the absence of corruption). * Promote the health and well-being of its citizens (the social development index measures human development and equitable distribution of income). * Create a favorable climate for stable economic growth (the economic management index measures outward orientation, independence of the central bank, and an inverted debt-to-GDP ratio). In relating the index of governance quality to degree of fiscal decentralization for the 80 countries, Huther and Shah are not surprised to find a positive relationship between fiscal decentralization and quality of governance. But the strength of the correlation is surprising. This paper-a product of Country Evaluation and Regional Relations Division, Operations Evaluation Department-is part of a larger effort in the department to examine the role of the authorizing environment in public sector performance.
Author: Moussé Sow
Publisher: International Monetary Fund
ISBN: 1475564031
Category : Business & Economics
Languages : en
Pages : 30
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Book Description
This paper explores the impact of fiscal decentralization on the efficiency of public service delivery. It uses a stochastic frontier method to estimate time-varying efficiency coefficients and analyzes the impact of fiscal decentralization on those efficiency coefficients. The findings indicate that fiscal decentralization can improve the efficiency of public service delivery but only under specific conditions. First, the decentralization process requires adequate political and institutional environments. Second, a sufficient degree of expenditure decentralization seems necessary to obtain favorable outcomes. Third, decentralization of expenditure needs to be accompanied by sufficient decentralization of revenue. Absent those conditions, fiscal decentralization can worsen the efficiency of public service delivery.
Author: Roy Bahl
Publisher: Edward Elgar Publishing
ISBN: 1786435306
Category : Business & Economics
Languages : en
Pages : 430
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Book Description
This book draws on experiences in developing countries to bridge the gap between the conventional textbook treatment of fiscal decentralization and the actual practice of subnational government finance. The extensive literature about the theory and practice is surveyed and longstanding problems and new questions are addressed. It focuses on the key choices that must be made in decentralizing, on how economic and political factors shape the choices that countries make, and on how, by paying more attention to the need for a more comprehensive approach and the critical connections between different components of decentralization reform, everyone involved might get more for their money.
Author: Robert D. Ebel
Publisher: World Bank Publications
ISBN:
Category : Central-local government relations
Languages : en
Pages : 32
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Book Description
Author: Paul J. Smoke
Publisher: Edward Elgar Publishing
ISBN: 9781781956267
Category : Political Science
Languages : en
Pages : 408
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Book Description
Public sector decentralization has emerged prominently in many Asian and Latin American countries as a strategy to promote development and political reform. Results in both cases have been mixed. Despite broad similarities in intent and outcome, contextual differences between the regions have led to striking differences in the way decentralization has been structured and implemented. This volume takes an atypically historical and interdisciplinary perspective on decentralization, highlighting how fiscal and political forces together have been shaping its evolution in the two regions.
Author: Michal Plaček
Publisher: Springer Nature
ISBN: 3030467589
Category : Law
Languages : en
Pages : 214
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Book Description
This book examines the impacts of fiscal decentralization reforms on the efficiency of local governments in Central and Eastern European (CEE) countries. By offering a comparative perspective and by applying econometric methods and regression models, it analyses various reform trajectories and their effects on individual CEE countries. Furthermore, the book discusses input and output indicators for evaluating the efficiency of municipalities. Readers will learn about the common features of these countries, the impact of path dependence, and future prospects for decentralization reforms. In closing, the book discusses modern management and administration methods, opportunities for cooperation between municipalities, co-creative service delivery, and other measures that could improve the efficiency of public service provision.
Author: David A. Robalino
Publisher:
ISBN:
Category :
Languages : en
Pages : 14
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Book Description
Greater fiscal decentralization is consistently associated with lower mortality rates. And its positive effects on infant mortality are greater in institutional environments that promote political rights.Decentralization of fiscal responsibilities has emerged as a primary objective on the agendas of national governments and international organizations alike. Yet there is little empirical evidence on the potential benefits of this intervention. Robalino, Picazo, and Voetberg fill in some quantitative evidence.Using panel data on infant mortality rates, GDP per capita, and the share of public expenditures managed by local governments, they find that greater fiscal decentralization is consistently associated with lower mortality rates. The results suggest that the benefits of fiscal decentralization are particularly important for poor countries. They suggest also that the positive effects of fiscal decentralization on infant mortality are greater in institutional environments that promote political rights.Fiscal decentralization also appears to be a mechanism for improving health outcomes in environments with a high level of corruption. In environments with a high level of ethnolinguistic fractionalization, however, the benefits from fiscal decentralization tend to be smaller.This paper - a product of Human Development 1, Africa Technical Families - is part of a larger effort in the region to conduct rigorous analysis of the implications of fiscal decentralization on the financing and delivery of social services. The authors may be contacted at
[email protected],
[email protected]., or
[email protected].
Author:
Publisher: World Bank Publications
ISBN:
Category : Decentralization in government
Languages : en
Pages : 29
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Book Description
Dissatisfied with centralized approaches to delivering local public services, a large number of countries are decentralizing responsibility for these services to lower-level, locally elected governments. The results have been mixed. The paper provides a framework for evaluating the benefits and costs, in terms of service delivery, of different approaches to decentralization, based on relationships of accountability between different actors in the delivery chain. Moving from a model of central provision to that of decentralization to local governments introduces a new relationship of accountability-between national and local policymakers-while altering existing relationships, such as that between citizens and elected politicians. Only by examining how these relationships change can we understand why decentralization can, and sometimes cannot, lead to better service delivery. In particular, the various instruments of decentralization-fiscal, administrative, regulatory, market, and financial-can affect the incentives facing service providers, even though they relate only to local policymakers. Likewise, and perhaps more significantly, the incentives facing local and national politicians can have a profound effect on the provision of local services. Finally, the process of implementing decentralization can be as important as the design of the system in influencing service delivery outcomes.
