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Intergovernmental finance and local taxation in developing countries: Some basic considerations for reformers
Author(s) -
Bird Richard M.
Publication year - 1990
Publication title -
public administration and development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.574
H-Index - 44
eISSN - 1099-162X
pISSN - 0271-2075
DOI - 10.1002/pad.4230100304
Subject(s) - incrementalism , decentralization , restructuring , economics , flexibility (engineering) , transparency (behavior) , developing country , theme (computing) , economic policy , economic system , political science , economic growth , finance , market economy , law , management , politics , computer science , operating system
Decentralization is an increasingly fashionable theme in the development literature. This paper attempts to distil from experience in a number of countries some basic considerations that should be taken into account by would‐be decentralizers with respect to intergovernmental fiscal relations and local taxation. After a brief review of the nature of the problem and the economic case for decentralization, four basic principles of reform—transparency, stability, flexibility, and incrementalism—are put forward as useful guidelines to the restructuring of governmental finances and functions that seem needed in many developing countries.