Sequencing fiscal decentralization
Bahl, Roy W. (Georgia State University)
Martínez-Vázquez, Jorge, 1948- (Georgia State University)

Fecha:	2013
Resumen:	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 of decentralization including the order of an introduction of decentralization policies, the number of years necessary to bring a full program on line, and the components of the transition strategy. We argue that the sequencing of decentralization policies is an important determinant of its success. The consequences of a poorly sequenced decentralization program can range from minor delays and complications to ineffectiveness and subsequent failing support of decentralization efforts, macroeconomic instability, and fundamental failure in public sector delivery. At a minimum, the strategy of "making it up as we go" will not lead to the same structure of decentralization as will a planned strategy. The paper raises two questions: First, is there an optimal sequencing for decentralization policies and implementation? Our answer is that there is, and that following these sequencing rules can reduce the costs and risks of implementing fiscal decentralization. Second, to what extent do countries follow these optimal sequencing rules? The answer is, in general, they do not. The gap between theory and practice is a result of the complexity of sequencing design, which discourages fiscal planners from implement the full process. In addition, sequencing requires a sustained discipline and vision for its implementing, as well as overcoming pressures from political actors, especially in developing countries.
Ayudas:	Ministerio de Economía y Competitividad ECO2012-37572
Derechos:	Tots els drets reservats.
Lengua:	Anglès
Documento:	Article ; recerca ; Versió publicada
Materia:	Fiscal policies ; Decentralization ; Decentralization policies ; Sequencing
Publicado en:	Annals of economics and finance, Vol. 14 Núm. 2 (B) (2013), p. 623-670, ISSN 1529-7373

Adreça alternativa: http://aeconf.com/nov2013.htm

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